The US dollar advanced on Wednesday’s North American trading session versus its major counterpart currencies. The surge in US dollar came after latest data showing improved private sector employment rate in United States.
The dollar index DXY which measures the greenback’s performance versus its six major rivals surged to 80.246 as compared to 79.33 on Tuesday’s trading session. The latest report showed that US private sector payrolls increased by 297,000 for the month of December which surpassed the economists’ forecasted increase of 100,000 jobs.
Director of currency research Kathy Lien from GFT commented, “Although we expect the dollar to hold onto its gains going into the payrolls report, the strong ADP report will cause traders to reposition for a significant increase in nonfarm payrolls, should the number disappoint, the dollar could come crashing down.”
The Euro declined versus the US dollar to 1.3153 as compared to 1.3305 on Tuesdays while the British Pound dropped 0.5 percent to 1.5498 against the greenback. The US dollar also gained against the Japanese Yen to 83.26 from 82 on Late Tuesday.
The Euro remained under severe selling pressure mainly due to the news of exclusion of Irish government bonds from collateral options by Swiss National Bank. A spokesman of the central bank of Switzerland stated on the issue that only, “securities that fulfill stringent requirements with regard to credit rating and liquidity are accepted as collateral.”
Australian dollar reported the fall of 0.6 percent to 1.0003 versus the US dollar as the floods in province of Queensland created uncertainty among investors and traders about the country’s affected production which could result in lower exports.
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Daily forex trading news written by Rehan from DailyForexTrade.com
