The dollar was little changed Wednesday, holding near its highest in four years versus a basket of major currencies.
Traders moved to the sidelines ahead of Friday’s pivotal non-farm payrolls report.
In a key prelude to the official jobs report, payroll processor ADP today said employment in the U.S. private sector increased by more than expected in the month of September.
ADP said private sector employment jumped by 213,000 jobs in September following a downwardly revised increase of 202,000 jobs in August.
Growth in U.S. manufacturing activity saw a notable slowdown in the month of September, according to a report released by the Institute for Supply Management on Wednesday, with the index of activity in the sector pulling back off a three-year high.
The dollar was stuck at a nearly 2-year peak of $1.26 versus the euro despite another round of downbeat economic news from Europe.
The Italian government said the country’s gross domestic product will shrink 0.3 percent this year, down sharply from its April prediction of an increase of 0.8 percent.
Meanwhile, final data from Markit Economics showed the Eurozone manufacturing moved closer to stagnation in September as German factory sector contracted for the first time in 15 months.
The news raised speculation the European Central Bank will offer further stimulus Thursday.
The dollar was steady at a 6-year peak near Y110 against the yen, and hovered near $1.62 versus the sterling.
The material has been provided by InstaForex Company – www.instaforex.com