Daily Afternoon Report 02.03.2016

The dollar remained broadly higher against the other major currencies on Wednesday, still hovering close to a one-month peak after the release of upbeat U.S. private sector employment data.

USD/JPY rose 0.38% to 114.45.

The greenback remained supported after payroll processing firm ADP said non-farm private employment rose by 214,000 last month, surpassing expectations for an increase of 190,000.

The economy created 193,000 jobs in January, whose figure was downwardly revised from a previously reported increase of 205,000.

The data came after a string of upbeat U.S. economic reports, adding to expectations for the Federal Reserve to hike interest rates again this year.

EUR/USD edged down 0.17% to 1.0849.

The euro remained under pressure after weak eurozone inflation and factory data earlier in the week cemented expectations for more easing by the European Central Bank at its upcoming meeting on March 10.

The dollar was lower against the pound, with GBP/USD up 0.44% at 1.4015 and was higher against the Swiss franc, with USD/CHF adding 0.19% to 0.9994.

Earlier Wednesday, data showed that the Markit construction purchasing managers’ index fell to 54.2 from January’s 55.0. Economists had expected the index to tick up to 55.5.

It was the slowest increase in overall construction output since April 2015.

Meanwhile, the Australian dollar was stronger, with AUD/USD up 0.75% at 0.7228, while NZD/USD fell 0.27% to 0.6609.

The Aussie was boosted after the Australian Bureau of Statistics said that gross domestic product grew 0.6% in the fourth quarter, beating expectations for 0.4%. The economy grew 1.1% in the third quarter, whose figure was revised from a previously estimated growth rate of 0.9%.

Year-on-year, Australia’s economy grew 3.0% in the last quarter, above expectations for 2.5%.

USD/CAD gained 0.32% to 1.3450.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.18% at 98.52, just below the previous session’s one-month high of 98.59.