The dollar fell to session lows against the euro and the yen on
Wednesday following the release of weaker-than-expected U.S. employment
and service sector data.
During U.S. morning trade, the dollar was trading close to session lows against the euro, with EUR/USD rising 0.25% to 1.2849.
The dollar weakened broadly after data showed that the U.S. service sector expanded at the slowest pace in five months in March.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 54.4 from a reading of 56.0 in February.
Analysts had expected the index to decline to 55.8 last month.
The report came on the heels of data showing that the U.S. private sector added far fewer jobs than expected last month.
ADP nonfarm payrolls increased by a seasonally adjusted 158,000 in March, well below expectations for a gain of 200,000, following an upwardly revised increase of 237,000 in February.
Sentiment on the single currency remained fragile as investors awaited the outcome of the European Central Bank’s policy meeting on Thursday.
The ECB was not expected to announce any changes to monetary policy, but investors were awaiting comments from President Mario Draghi at the bank’s post-policy meeting press conference.
The dollar was close to five-week lows against the yen, with USD/JPY down 0.59% to 92.86.
The yen’s gains looked likely to remain limited as expectations for aggressive easing measures by the Bank of Japan under new Governor Haruhiko Kuroda remained intact ahead of the conclusion of the bank’s policy meeting on Thursday.
The dollar was lower against the pound, with GBP/USD rising 0.27% to 1.5144.
The pound briefly touched session lows earlier after data showed that the U.K. construction sector remained in contraction territory for the fifth successive month in March.
The Markit U.K. construction purchasing managers' index ticked up to 47.2 from 46.8 in February, still below the 50 mark that separates growth from contraction and undershooting forecasts for a reading of 47.5.
The dollar fell to session lows against the Swiss franc, with USD/CHF falling 0.41% to 0.9452.
The greenback was broadly weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD dropping 0.18% to 1.0129, AUD/USD rising 0.35% to 1.0486 and NZD/USD climbing 0.28% to 0.8440.
In Australia, official data showed that the trade deficit narrowed to AUD178 million in February from a deficit of AUD1.2 billion the previous month, compared to expectations for a deficit of AUD1 billion.
Elsewhere data showed that China's HSBC’s services PMI rose to a six-month high of 54.3 in March, while the official version of the services PMI rose to 55.6 in March from 54.5 in February.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% to 82.86.
During U.S. morning trade, the dollar was trading close to session lows against the euro, with EUR/USD rising 0.25% to 1.2849.
The dollar weakened broadly after data showed that the U.S. service sector expanded at the slowest pace in five months in March.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 54.4 from a reading of 56.0 in February.
Analysts had expected the index to decline to 55.8 last month.
The report came on the heels of data showing that the U.S. private sector added far fewer jobs than expected last month.
ADP nonfarm payrolls increased by a seasonally adjusted 158,000 in March, well below expectations for a gain of 200,000, following an upwardly revised increase of 237,000 in February.
Sentiment on the single currency remained fragile as investors awaited the outcome of the European Central Bank’s policy meeting on Thursday.
The ECB was not expected to announce any changes to monetary policy, but investors were awaiting comments from President Mario Draghi at the bank’s post-policy meeting press conference.
The dollar was close to five-week lows against the yen, with USD/JPY down 0.59% to 92.86.
The yen’s gains looked likely to remain limited as expectations for aggressive easing measures by the Bank of Japan under new Governor Haruhiko Kuroda remained intact ahead of the conclusion of the bank’s policy meeting on Thursday.
The dollar was lower against the pound, with GBP/USD rising 0.27% to 1.5144.
The pound briefly touched session lows earlier after data showed that the U.K. construction sector remained in contraction territory for the fifth successive month in March.
The Markit U.K. construction purchasing managers' index ticked up to 47.2 from 46.8 in February, still below the 50 mark that separates growth from contraction and undershooting forecasts for a reading of 47.5.
The dollar fell to session lows against the Swiss franc, with USD/CHF falling 0.41% to 0.9452.
The greenback was broadly weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD dropping 0.18% to 1.0129, AUD/USD rising 0.35% to 1.0486 and NZD/USD climbing 0.28% to 0.8440.
In Australia, official data showed that the trade deficit narrowed to AUD178 million in February from a deficit of AUD1.2 billion the previous month, compared to expectations for a deficit of AUD1 billion.
Elsewhere data showed that China's HSBC’s services PMI rose to a six-month high of 54.3 in March, while the official version of the services PMI rose to 55.6 in March from 54.5 in February.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% to 82.86.
