Dollar Edges Higher as Bullish Data Points to Economic Strength By

© Reuters.

By Yasin Ebrahim – The dollar climbed on Wednesday as firmer services and private labor market data suggested the underlying U.S. economy remained on solid footing.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.28% to 98.09.

data for January showed an uptick to 55.5, beating expectations of 55.

The services sector is a critical component of the U.S. economy, accounting for roughly 80% of U.S. private-sector gross domestic product (GDP).

On the labor market front, grew by 291,000 last month, a sharp increase from the 199,000 in December, according to a report released Wednesday by ADP (NASDAQ:) and Moody’s Analytics. That beat the economists’ forecast of 156,000.

The bullish labor market data – just days ahead of the all-important nonfarm payrolls print due Friday – underpinned investor hopes that the economy will remain resilient despite the threat to global growth from a coronavirus-led slowdown in China.

Safe-haven demand remained on the back foot, pressuring the yen and Swiss franc as fears about the impact of the coronavirus eased despite the death toll in China rising to 493 so far and 25,000 infected.

rose 0.19% to Y109.72 and gained 0.39% to 0.9728.

fell 0.20% $1.3004 as Brexit concerns remerged following reports that the EU, as part of upcoming trade talks, could strip concessions it granted to U.K. investment firms — a potential move that would hurt Britain’s economically important financial sector.

The EU reportedly is considering amending a regulation known as MIFID II, which governs how countries outside the EU sell financial services to customers within the economic bloc.

fell 0.30% to $1.1003.

fell 0.18% to C$1.3295 but gains were kept in check as a surge in oil prices underpinned the loonie.

Oil prices jumped sharply as better-than-expected crude inventory numbers offset a larger build in weekly crude supplies. Crude prices were also supported by hopes that OPEC and its allies will agree to rein in production further in an effort to curb the expected impact of the coronavirus on oil demand.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *