RTTNews - The dollar saw some weakness against its European rivals on Wednesday in New York as a rise in U.S. and European equities added to the appeal of higher-yielding currencies.
The greenback reached its lowest mark in almost three weeks against the euro and also turned back lower against the sterling. The buck saw slight weakness against the yen after touching a near-term high in early trading.
Investors mulled over employment data showing jobs fell by more than expected in the month of June. Pending home sales, ISM manufacturing and construction spending data was also in focus.
The dollar dropped to a 20-day low of 1.4200 against the euro, surrendering yesterday's modest rally.
In the Eurozone, data released by the Federal Statistical Office on Wednesday showed that calendar and seasonally adjusted retail sales rose real 0.4% month-on-month in May after rising 0.5% in April and 0.2% in March. The increase was unexpected as economists were looking for sales to remain flat in May.
The greenback turned slightly lower against the pound, moving to 1.6472 in the mid-afternoon after hitting a five-day high of 1.6383 yesterday. Earlier in the week, the dollar hit an eight-month low of 1.6744.
U.K.'s service sector output dropped 1.2% in the three months to April compared with the three months to January, the Office for National Statistics said today. It follows a revised 1.6% fall in the three months to March. This is the tenth consecutive three months on previous three months decrease, the ONS said.
The dollar inched lower against the yen after earlier hitting an 11-day high of 0.96972. The buck held most of its gains from earlier in the week.
Automatic Data Processing said that non-farm private employment fell by 473,000 jobs in June following a revised decrease of 485,000 jobs in May. Economists had expected a decrease of 394,000 jobs compared to the loss of 532,000 jobs originally reported for the previous month.
Later, industry data showed pending home sales index rose 0.1 percent to 90.7 in May from an upwardly revised reading of 90.6 in April. Economists had been expecting the index to come in unchanged compared to the 90.3 originally reported for the previous month.
The ISM said its index of activity in the manufacturing rose to 44.8 in June from 42.8 in May, with a reading below 50 indicating a contraction in the sector. The index came roughly in line with the expectations of economists, who forecast a reading of 44.6.
The U.S. Commerce Department revealed that construction spending fell 0.9 percent in May, following a revised 0.6 percent rise in the previous month.
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