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Dollar broadly higher after ADP data, central banks eyed

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Shutterstock photo - The dollar was broadly higher against the other major currencies on Wednesday after the release of upbeat U.S. private sector employment data, while investors eyed central bank meetings in Europe and Japan on Thursday.

During U.S. morning trade, the dollar was higher against the euro, with EUR/USD down 0.39% to 1.2999.

In the U.S., a report showed that ADP non-farm payrolls rose by a seasonally adjusted 198,000 in February, beating expectations for an increase of 170,000.

January's figure was revised up to a gain of 215,000 from a previously reported increase of 192,000.

Sentiment on the single currency remained fragile as concerns over the economic outlook for the euro zone sparked worries that the European Central Bank could flag future rate cuts after its policy meeting on Thursday.

Data on Wednesday confirmed that the euro zone economy contracted by 0.6% in the fourth quarter, in line with the preliminary estimate and economists' forecasts.

Elsewhere, the dollar was stronger against the pound, with GBP/USD falling 0.43% to 1.5060.

Sterling remained under pressure ahead of the outcome of the Bank of England's policy meeting on Thursday amid speculation over whether the bank will resume its asset purchase program.

The dollar was also up against the yen, with USD/JPY rising 0.26% to 93.54.

The Bank of Japan was not widely expected to announce any changes to monetary policy on Thursday, but a change of leadership later this month was expected to result in a move towards more aggressive easing measures, aimed at combating deflation.

The greenback rose to three-and-a-half month highs against the Swiss franc with USD/CHF climbing 0.54% to 0.9459.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD up 0.43% to 1.0314, AUD/USD easing up 0.09% to 1.0266 and NZD/USD up 0.17% to 0.8322.

The Canadian dollar slid to almost eight months lows against the greenback earlier after the Bank of Canada left interest rates on hold at 1.00% and said current monetary policy is appropriate.

Meanwhile, data showed that Canada's Ivey purchasing managers' index fell to 51.1 last month from 58.9 in January. Analysts had expected the index to tick down to 58.0.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to 82.42.

Also Wednesday, official data showed that U.S. factory orders dropped 2% in January, slightly below expectations for a 2.2% decline. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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