RTTNews - The dollar continued its free-fall versus the sterling but remained relatively stable versus other major currencies as traders looked ahead to a trip of economic reports, headlined by a prelude to Friday's key jobs data.
Increased risk appetite and evidence that the British banking system is better off than once feared have crippled the dollar of late versus the sterling. Wednesday morning, the dollar dropped to 1.7040, extending its lowest level since last October.
The dollar has plummeted more than 35 cents from its yearly high, set during the throes of the financial crisis.
For a second morning in a row, the dollar managed to hold its ground versus the euro, but remained precariously close to Monday's 8-month low of 1.4444.
The dollar was attempting to stabilize versus the loonie, holding above C$1.0725 after hitting a 10-month low of C$1.6030 on Monday.
In the race to establish positions in higher-yielding currencies as stocks have improved, both the dollar and yen have been hit hard. Versus the yen, the dollar has seen choppy trading, with the pair moving between 94 and 96 for the past two weeks.
On the economic front, traders will be presented with ADP National Employment report at 8.15 a.m ET which will throw light on non-farm private unemployment numbers for July, which is a sort of a prelude for the key Labor Department's monthly job report slated for release on Friday.
Economists expect that the private sector shed 340,000 jobs during the month.
Among the other major economic numbers, the Commerce Department will report the durable goods report for June. Analysts expect a 0.5% decline in durable goods for the month.
The Institute of Supply Management will release the non-manufacturing survey results for July at 10.00 am ET. Economists expect the purchasing managers' index to show a reading of 48, after having increased to 47 in June.
Eurozone's composite output index or composite PMI stood at 47 in July, higher than the flash estimate of 46.8 and 44.6 in June, the latest survey from the Markit Economics showed Wednesday. The latest reading signaled an easing in the rate of contraction for the fifth month in a row and the weakest drop in output since last August, the report said.
For comments and feedback: contact email@example.com