Investing.com - The euro dipped to session lows against the dollar on Wednesday after data showed that U.S. private sector employment increased in March, as investors remained cautious ahead of the European Central Bank’s policy meeting on Thursday.
EUR/USD touched lows of 1.3778 and was last down 0.08% to 1.3782.
The pair was likely to find support at 1.3720, the low of March 31 and resistance at 1.3819, the session high.
The dollar pushed higher after payroll processing firm ADP reported that the U.S. private sector added 191,000 jobs last month, slightly below expectations for jobs growth of 195,000.
February’s figure was revised up to a gain of 178,000 from a previously reported increase of 139,000.
While the report is not viewed as a reliable guide for the government jobs report due on Friday, it does give guidance on private-sector hiring.
The euro remained supported ahead of Thursday’s ECB meeting, as hopes that China will implement economic stimulus measures to shore up growth continued to underpin risk appetite.
Data released on Wednesday showing that euro zone producer prices fell in February added to pressure on the ECB to implement fresh policy measures to stave off the risk of deflation in the currency bloc.
However some investors expected the ECB to leave monetary policy on hold, after Bundesbank head Jens Weidmann said over the weekend that the euro zone is not in a deflationary cycle, and that the recent slowdown in inflation was due in large part to temporary factors, such as falls in food and energy prices.
The euro slipped lower against the yen and the pound, with EUR/JPY down 0.14% to 142.79 and EUR/GBP sliding 0.18% to 0.8279.