Investing.com - A stronger-than-expected industry report on hiring in the U.S. private sector strengthened the dollar against the euro on Wednesday by cementing expectations that official data will come in strong and keep the Federal Reserve on course to scaling back stimulus programs in early 2014.
In U.S. trading on Wednesday, EUR/USD was down 0.23% at 1.3558, up from a session low of 1.3524 and off from a high of 1.3614.
The pair was likely to find support at 1.3490, the low from Nov. 25, and resistance at 1.3616, Monday's high.
Payroll processing firm ADP reported earlier that non-farm private employment rose by a seasonally adjusted 215,000 in November, blowing past expectations for an increase of 173,000.
November's figure was revised up to a gain of 184,000 from a previously reported increase of 130,000.
The news bolstered the dollar by keeping expectations strong for the Federal Reserve to announce plans to taper its USD85 billion in monthly bond purchases in early 2014.
Fed bond purchases aim to boost economic recovery by driving down long-term interest rates, weakening the dollar in the process, though talk of their dismantling often strengthens the greenback.
The Bureau of Labor Statistics will release the official November jobs report on Friday.
Hit-or-miss economic indicators elsewhere in the U.S. failed to seriously dampen the dollar's advance in U.S. trading though they did chop up trading somewhat.
The Institute of Supply Management said its non-manufacturing purchasing managers' index declined to 53.9 in November from a 55.4 in October.
Analysts were expecting the index to ease down to 55.0 last month.
In addition, the U.S. Census Bureau said new home sales rose by 25.4% to a seasonally adjusted 444,000 units in November, beating expectations for an increase to 428,000 and hitting a four-month high
A separate report showed that the U.S. trade deficit narrowed to a seasonally adjusted USD40.6 billion in October from a USD43.0 billion deficit in September, whose figure was revised from a previously reported deficit of USD41.8 billion.
Analysts had expected the U.S. trade deficit to narrow to USD40 billion in October.
Meanwhile in Europe, retail sales fell 0.2% in October compared to expectations for a 0.3% rise, according to official data.
The report came after London-based Markit Economics said that the bloc's final service-sector PMI ticked up to 51.2 in November from a preliminary reading of 50.9 though still below October's 51.6 reading.
The single currency was flat against the pound and down against the yen, with EUR/GBP trading up 0.01% at 0.8292 and EUR/JPY trading down 0.34% at 138.82.
On Thursday, the European Central Bank is to announce its benchmark interest rate. The announcement is to be followed by a press conference with President Mario Draghi.
The U.S. is to publish a revised estimate of third-quarter gross domestic product, while the Labor Department is to release its weekly report on initial jobless claims. The U.S. is also to publish data on factory orders.
In U.S. trading on Wednesday, EUR/USD was down 0.23% at 1.3558, up from a session low of 1.3524 and off from a high of 1.3614.
The pair was likely to find support at 1.3490, the low from Nov. 25, and resistance at 1.3616, Monday's high.
Payroll processing firm ADP reported earlier that non-farm private employment rose by a seasonally adjusted 215,000 in November, blowing past expectations for an increase of 173,000.
November's figure was revised up to a gain of 184,000 from a previously reported increase of 130,000.
The news bolstered the dollar by keeping expectations strong for the Federal Reserve to announce plans to taper its USD85 billion in monthly bond purchases in early 2014.
Fed bond purchases aim to boost economic recovery by driving down long-term interest rates, weakening the dollar in the process, though talk of their dismantling often strengthens the greenback.
The Bureau of Labor Statistics will release the official November jobs report on Friday.
Hit-or-miss economic indicators elsewhere in the U.S. failed to seriously dampen the dollar's advance in U.S. trading though they did chop up trading somewhat.
The Institute of Supply Management said its non-manufacturing purchasing managers' index declined to 53.9 in November from a 55.4 in October.
Analysts were expecting the index to ease down to 55.0 last month.
In addition, the U.S. Census Bureau said new home sales rose by 25.4% to a seasonally adjusted 444,000 units in November, beating expectations for an increase to 428,000 and hitting a four-month high
A separate report showed that the U.S. trade deficit narrowed to a seasonally adjusted USD40.6 billion in October from a USD43.0 billion deficit in September, whose figure was revised from a previously reported deficit of USD41.8 billion.
Analysts had expected the U.S. trade deficit to narrow to USD40 billion in October.
Meanwhile in Europe, retail sales fell 0.2% in October compared to expectations for a 0.3% rise, according to official data.
The report came after London-based Markit Economics said that the bloc's final service-sector PMI ticked up to 51.2 in November from a preliminary reading of 50.9 though still below October's 51.6 reading.
The single currency was flat against the pound and down against the yen, with EUR/GBP trading up 0.01% at 0.8292 and EUR/JPY trading down 0.34% at 138.82.
On Thursday, the European Central Bank is to announce its benchmark interest rate. The announcement is to be followed by a press conference with President Mario Draghi.
The U.S. is to publish a revised estimate of third-quarter gross domestic product, while the Labor Department is to release its weekly report on initial jobless claims. The U.S. is also to publish data on factory orders.