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Dollar remains broadly higher, Yellen speech on tap

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Investing.com -

Investing.com - The dollar remained broadly higher against the other major currencies on Wednesday, after the release of a strong U.S. non-farm private employment report and as investors eyed a speech by Federal Reserve Chair Janet Yellen scheduled later in the day.

The dollar was higher against the yen, with USD/JPY up 0.28% at 120.07.

Payroll processing firm ADP said U.S. non-farm private employment rose by 200,000 this month, above expectations for an increase of 194,000.

The economy created 186,000 jobs in August, whose figure was downwardly revised from a previously reported increase of 190,000.

Separately, market research group Kingsbury International said its Chicago purchasing managers' index tumbled by 5.7 points to 48.7 this month from a reading of 54.4 in August. Analysts had expected the index to fall 1.4 points to 53.0 in September.

Investors awaited comments by Fed Chair Janet Yellen due later in the day after mixed messages from several U.S. central bank policymakers last week led to uncertainty over whether the Fed will raise short term interest rates this year.

The dollar was also higher against the euro, with EUR/USD dropping 0.66% to 1.1174.

The single currency came under pressure after Eurostat, the statistical body of the European Union, reported that the annual rate of inflation in the single currency bloc fell by 0.1% this month, compared to forecasts for a flat reading.

It was the first time in six months that the region saw declining inflation.

Another report showed that the euro zone unemployment rate remained unchanged at 11.0% in August.

Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.5154, and was higher against the Swiss franc, with USD/CHF gaining 0.40% to 0.9758.

Sterling found support after data showed that U.K. gross domestic product expanded at a rate of 0.7% in the three months to June, meeting forecasts and unchanged from a preliminary estimate.

Year-over-year, U.K. economic growth expanded by 2.4% in the second quarter, down from an initial estimate of 2.6%.

The Australian and New Zealand dollars remained stronger, with AUD/USD up 0.59% to 0.7028 and with NZD/USD advancing 0.71% to 0.6392.

Meanwhile, USD/CAD slid 0.27% to trade at 1.3386 after Statistics Canada reported that the country's GDP rose 0.3% in July, beating expectations for an increase of 0.2%.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.42% at 96.47.

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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.


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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