In European session on Wednesday, the dollar showed mixed trading against other major currencies. The dollar rose to near a 1-year high against the franc, extended its previous session’s gains against the euro and showed choppy trading against the pound and the yen.
The U.S. ADP employment report for April is slated for release at 8:15 am ET. Following this report, the ISM non-manufacturing composite index for also for April is due at 10:00 am ET.
Against the Swiss franc, the dollar rose to near a 1-year high of 1.1084 at 7:05 am ET. As of now, the dollar-franc pair is trading at 1.1074, compared to yesterday’s close of 1.1038. If the dollar ticks up further, it may target around the 1.225 level.
The dollar has been showing choppy trading against its British counterpart in European deals on Wednesday. Currently, the dollar is worth 1.5150 against the pound, compared to yesterday’s close of 1.5141.
UK construction activity expanded for second consecutive month in April, the Markit Economics said today.
The Markit/CIPS construction purchasing managers index or PMI stood at a seasonally adjusted 58.2 in April, up from 53.1 in the previous month. This was the biggest reading since September 2007. Economists expected a reading of 53.2.
The dollar has been extending its previous session’s gaining streak against the euro. As of now, the dollar is trading at more than a 1-year high of 1.2921 against the euro, compared to 1.2982 hit at yesterday’s close. If the dollar gains further, it may target around the 1.256 level.
Eurozone retail sales remained flat in March on a monthly basis after declining for two straight months, data from Eurostat showed today. The decline for February was revised to 0.2% from 0.6%. Economists were looking for a 0.1% rise for March.
Year-on-year, the volume of retail trade slipped 0.1%, slightly smaller than February’s 0.2% decline. Consensus forecast was for 0.5% fall. The statistical office revised down February’s figure from 1.1% drop.
The dollar that rose to a multi-month high of 95.00 against the yen at 2:40 am ET weakened thereafter. However, the dollar reversed its direction around 4:25 am ET and the dollar-yen pair is now trading in a tight range. The pair, which closed yesterday’s trading at 94.62, is now worth 94.83.
