Currency traders are targeting risk assets on Wednesday. The euro rose against the dollar for the first time in three days, after a PMI of manufacturing production in the region exceeded analysts' estimates, signaling Europe's economy is picking up.
On the other hand, the greenback weakened after manufacturing in China and the U.S grew as well, driving traders to seek higher-yielding assets and damping demand for safe havens. Furthermore, the Yen rallied versus the U.S dollar on speculation central bank of Japan will intervene to weaken the currency.
In fact, manufacturing data from around the largest economies lifted up demand for risk assets, after Chinese manufacturing gauges inclined and a U.K. manufacturing index rose to its highest level since May last year. Equities starched rally after the U.S ISM manufacturing index picked up to 54.1 in January from 53.1 in December.
Positive factory growth somehow brushed aside job creation disappointment, as the ADP employment report showed that U.S companies was able to add 170 thousand jobs in to the private payrolls in January, from a revised 292 thousand added back at the end of the year, missing analysts' expected estimate of 182 thousand workers.
The dollar depreciated against its most-traded peers today, sending the dollar index, which measures the performance of the U.S dollar against the euro, the pound and the Japanese Yen, down from the opening level of 79.36 to trade around 78.66, printing the highest level of 79.578 and lowest of 78.62.
Gold prices climbed to $1745.46 an ounce after opening at $1737.18. Oil futures steadied following the release of the EIA crude oil inventories report, to trade around $98.65 a barrel from $98.84.
The 17-bloc currency rose versus the dollar, driving the EUR/USD pair up from the opening level of $1.3076 to trade around $1.3170, recording the highest level of $1.3128 and lowest of $1.3026.
The British pound gained versus the dollar as well, where the GBP/USD pair started to trade at $1.5760 and currently trades around $1.5845, while recording the highest level of $1.5882 and lowest of $1.5706.
Finally, the dollar retreated versus the yen, sending the USD/JPY pair to trade around ¥76.25, down from the opening level of ¥76.27 and recording the highest level of ¥76.28 and lowest of ¥76.02.