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Forex - EUR/USD hits session highs after U.S. ISM data

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Investing.com - The euro rose to session highs against the dollar on Wednesday after data showed that the U.S. service sector expanded at the slowest pace in five months in March.

EUR/USD hit 1.2864 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2853, gaining 0.30%.

The pair was likely to find support at 1.2789, the session low and resistance at 1.2888, the high of March 26.

The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 54.4 from a reading of 56.0 in February.

Analysts had expected the index to decline to 55.8 last month.

The report came on the heels of data showing that the U.S. private sector added far fewer jobs than expected last month.

ADP nonfarm payrolls increased by a seasonally adjusted 158,000 in March, well below expectations for a gain of 200,000, following an upwardly revised increase of 237,000 in February.

While not viewed as a reliable guide for the government jobs report due Friday, the ADP data does give guidance on private-sector hiring.

But sentiment on the euro remained fragile ahead of the outcome of the European Central Bank's upcoming policy meeting on Thursday.

The ECB was not expected to announce any changes to monetary policy, but investors were awaiting comments from President Mario Draghi at the bank's post-policy meeting press conference.

The euro was almost unchanged against the pound, with EUR/GBP edging up 0.02% to 0.8488 and slipped lower against the yen, with EUR/JPY losing 0.15% to trade at 119.55.

Earlier Wednesday, preliminary data showed that consumer inflation in the currency bloc ticked down to 1.7% in March from 1.8% in February, still slightly above forecasts for inflation of 1.6%.

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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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