Investing.com - The euro drifted higher against the dollar on Wednesday as investors braced for the Federal Reserve's announcement on monetary policy later in the afternoon.
The greenback edged lower on expectations for the U.S. central bank to leave its USD85 billion monthly asset-purchasing unchanged, while soft private-sector jobs data weakened the greenback as well.
In U.S. trading on Wednesday, EUR/USD was up 0.16% at 1.3766, up from a session low of 1.3733 and off from a high of 1.3778.
The pair was likely to find near-term support at 1.3652, the low from Oct. 21, and resistance at 1.3818, Monday's high.
Payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
The ADP report, seen as a precursor to the official monthly jobs report, served as the latest in a series of hit-or-miss indicators that have investors betting the Fed will leave policy ultra-loose.
Monetary stimulus measures such as monthly asset purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
Across the Atlantic in the euro zone, data released earlier revealed that Spain’s economy emerged from a recession in the third quarter, the first time since 2011.
The country's gross domestic product expanded 0.1% in the three months to September, following a 0.1% contraction in the previous quarter.
The euro, meanwhile, was flat against the pound and up against the yen, with EUR/GBP trading up 0.01% at 0.8567 and EUR/JPY trading up 0.18% at 135.22.
On Thursday, the euro zone is to produce preliminary data on consumer inflation and a separate report on the unemployment rate, a leading indicator of economic health.
The U.S. is to release data on initial jobless claims and a report on manufacturing activity in the Chicago region.
The greenback edged lower on expectations for the U.S. central bank to leave its USD85 billion monthly asset-purchasing unchanged, while soft private-sector jobs data weakened the greenback as well.
In U.S. trading on Wednesday, EUR/USD was up 0.16% at 1.3766, up from a session low of 1.3733 and off from a high of 1.3778.
The pair was likely to find near-term support at 1.3652, the low from Oct. 21, and resistance at 1.3818, Monday's high.
Payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
The ADP report, seen as a precursor to the official monthly jobs report, served as the latest in a series of hit-or-miss indicators that have investors betting the Fed will leave policy ultra-loose.
Monetary stimulus measures such as monthly asset purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
Across the Atlantic in the euro zone, data released earlier revealed that Spain’s economy emerged from a recession in the third quarter, the first time since 2011.
The country's gross domestic product expanded 0.1% in the three months to September, following a 0.1% contraction in the previous quarter.
The euro, meanwhile, was flat against the pound and up against the yen, with EUR/GBP trading up 0.01% at 0.8567 and EUR/JPY trading up 0.18% at 135.22.
On Thursday, the euro zone is to produce preliminary data on consumer inflation and a separate report on the unemployment rate, a leading indicator of economic health.
The U.S. is to release data on initial jobless claims and a report on manufacturing activity in the Chicago region.