Investing.com - The U.S. dollar extended gains against its major counterparts on Wednesday, as investors sought the safety of the greenback following the release of a spate of weak economic data from the U.S. and the euro zone.
During U.S. morning trade, the dollar was sharply higher against the euro, with EUR/USD dropping 0.66% to hit 1.3149.
In the U.S., payroll processing firm ADP said the private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000, after an increase of 209,000 in March. It was the smallest increase in ADP nonfarm payrolls since September 2011.
The data added to fears that the economic recovery in the U.S. is losing momentum, ahead of a government report on nonfarm payrolls on Friday, after government data in March showed a slowdown in hiring.
A separate report showed that factory orders in the U.S. declined in line with expectations in March, falling 1.5%, following a 1.1% increase the previous month.
Meanwhile, fears over the economic outlook for the euro zone weighed on market sentiment after final euro zone manufacturing data for April slumped to a 34-month low, while the unemployment rate in the bloc climbed to a record 10.7% in March.
The greenback was also higher against the pound, with GBP/USD losing 0.15% to hit 1.6197.
The pound remained supported after reports earlier showed that construction sector activity in the U.K. declined less-than-expected in April, while U.K. mortgage approvals rose unexpectedly in March.
Elsewhere, the greenback edged higher against the yen but posted strong gains against the Swiss franc, with USD/JPY inching up 0.07% to hit 80.14 and USD/CHF climbing 0.67% to hit 0.9138.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.37% to hit 0.9891, AUD/USD shedding 0.29% to hit 1.0302 and NZD/USD falling 0.66% to hit 0.8097.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.47% to hit 79.28.
During U.S. morning trade, the dollar was sharply higher against the euro, with EUR/USD dropping 0.66% to hit 1.3149.
In the U.S., payroll processing firm ADP said the private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000, after an increase of 209,000 in March. It was the smallest increase in ADP nonfarm payrolls since September 2011.
The data added to fears that the economic recovery in the U.S. is losing momentum, ahead of a government report on nonfarm payrolls on Friday, after government data in March showed a slowdown in hiring.
A separate report showed that factory orders in the U.S. declined in line with expectations in March, falling 1.5%, following a 1.1% increase the previous month.
Meanwhile, fears over the economic outlook for the euro zone weighed on market sentiment after final euro zone manufacturing data for April slumped to a 34-month low, while the unemployment rate in the bloc climbed to a record 10.7% in March.
The greenback was also higher against the pound, with GBP/USD losing 0.15% to hit 1.6197.
The pound remained supported after reports earlier showed that construction sector activity in the U.K. declined less-than-expected in April, while U.K. mortgage approvals rose unexpectedly in March.
Elsewhere, the greenback edged higher against the yen but posted strong gains against the Swiss franc, with USD/JPY inching up 0.07% to hit 80.14 and USD/CHF climbing 0.67% to hit 0.9138.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.37% to hit 0.9891, AUD/USD shedding 0.29% to hit 1.0302 and NZD/USD falling 0.66% to hit 0.8097.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.47% to hit 79.28.