The ADP or employment report showed an unexpected addition of jobs in the private sector, raising anticipation of receiving a good non-farm payrolls data on Friday. This news took dollar higher. Matthew Strauss, senioe currency strategist at RBC Capital Markets in Toronto said: "The ADP (employment report) number is bullish for the U.S. dollar especially in an environment where we've seen in the last few weeks U.S. data surprising on the upside. One should be reminded that the ADP number is not a highly reliable indicator of what might happen to non-farm payrolls. But nonetheless it has increased the risk that non-farm payrolls could be much stronger than the minus 75,000 expected."
The Federal Reserve's decision to inject more cash into the markets to make them more liquid also boosted the dollar.
The euro was down 0.3 percent at $1.5540. The dollar was up 0.1 percent at 108.20 yen.
Cheers! ;)
Daniella