RTTNews - The dollar was generally weaker versus other majors Wednesday morning in New York, unable to sustain its momentum from the previous session as traders continued to express little conviction about the health of the global economy.

Even with many now predicting the economic malaise may linger well into 2010, the safe haven dollar has been finding only modest interest.

Yesterday the dollar rose as stocks weakened and pessimism reigned, but this morning the dollar headed lower versus the sterling and failed to gain any further ground on the euro.

Looking at Wednesday's economic calendar, traders will focus on the ADP National Employment Report on non-farm private employment for August to be released at 8.15 am ET. Economists expect that the private sector might have lost 246,000 jobs for the month.

Also in focus will be the minutes of the FOMC meeting held between 11-12 August, which will be tabled by the Federal Reserve at 2.00 pm ET.

The most important economic report of the unfolding week will be the Labor Department's non-farm payroll employment report for August, which is due out on Friday.

On the currency charts, the dollar drifted slightly lower versus the euro, staying within a cent of yesterday's 2-week high of 1.4176.

The Eurozone economy contracted 0.1% sequentially in the second quarter, following a 2.5% fall in the first quarter, the Eurostat said Wednesday. The statistical office thus confirmed the flash estimate.

The dollar also pulled back versus the sterling, slipping to 1.6230 after hitting a 7-week high of 1.6112.

Against the yen, the dollar remained on the defensive, slipping to a 7-week low of 92.36. Japanese shares slumped badly overnight as the yen continued to firm up.

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