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Forex – Dollar up across the board ahead of U.S. jobs report

Published 01/05/2011, 07:12 AM
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Investing.com – The U.S. dollar was up against all of its major counterparts on Wednesday, amid optimism that the U.S. economic recovery was becoming self-sustaining and ahead of a report on U.S. employment.

During European early afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.61% to hit 1.3226.

Earlier in the day, sentiment on the single currency was hit after an auction of Portuguese Treasury bills was over-subscribed, but the yield the government was forced to pay rose sharply.

The greenback was also up against the pound with GBP/USD dipping 0.01% to hit 1.5583. Earlier Wednesday, data showed that the U.K. construction sector contracted more-than-expected in December.

Meanwhile, the greenback was up against the yen and the Swiss franc, with USD/JPY climbing 0.14% to hit 82.15 and USD/CHF rising 0.38% to hit 0.9522.

The greenback was also up against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.22% to hit 1.0005, AUD/USD shedding 0.38% to hit 1.0011 and NZD/USD sliding 0.23% to hit 0.7645.

Gold, copper and oil prices all fell sharply on Tuesday as commodity prices corrected after the holiday period, pressuring the commodity linked currencies lower.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.36%.

Later in the day, the U.S. was to publish a jobs report by Automatic Data Processing as well as data from the Institute of Supply Management on service sector activity.

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