The U.S. Dollar rose against major currencies on Wednesday, following the release of a report which showed that July U.S. private sector job data was unexpectedly better than the previous month. This data consequently raised the possibility of seeing some improvement in the data expected from the non-farming sector payroll, which will be released on Friday.
In addition, the U.S. Dollar was boosted by deteriorating confidence in the Euro zone economy; Euro zone economic sentiment fell to the lowest level in more than five years. The Reuters consensus forecast originally predicted 93.0, but actual figures showed worse than expected numbers at 89.5. Analysts believe that the data may be the sign needed to see a change in ECB monetary policy, with the eventual possibility of rate cuts.
Further reductions in oil prices also helped to elevate U.S. Dollar sentiment, though there continues to be lingering concerns, according to analysts, about the health of the United States financial sector, which would limit future greenback advances.
The U.S. Dollar traded up .1% to 108.20 Yen, erasing earlier losses at 107.71 Yen, while the Euro lost .3% at $1.5540, compared to $1.5616 yesterday.