Euro Rises Versus Dollar As Global Equities Rally

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The euro saw strength against its lower-yielding rivals on Wednesday in New York as higher global equities boosted risk appetite. All eyes are focused on the U.S. interest rate decision later this afternoon.

The Federal Open Market Committee's decision is expected at 2:15 p.m. ET. Rates are expected to be left uchanged near zero for the foreseeable future, but traders will watch accompanying comments for clues on future moves.

The euro tested a weekly high against the dollar, moving above 1.4840. The European currency also drifted toward the 14-month high above $1.50 reached last month.

The monthly Automatic Data Processing report showed that non-farm private employment fell by 203,000 jobs in October following a revised decrease of 227,000 jobs in September. Economists had expected a loss of 198,000 jobs compared to the decrease of 254,000 jobs originally reported for the previous month.

The euro was little-changed near a six-day low of 0.8920 against the sterling. The pair moved near 0.8960 in the early-afternoon.

A UK consumer confidence index stood at 72 in October, unchanged from September's revised reading. The expectations index dropped to 106 from 108, while the present situation index climbed to 22 from 19. The spending index was stable at 103.

The euro drifted to a five-day high against the yen, touching as high as 134.96.

The Eurostat said in a report that Eurozone industrial producer price index or PPI dropped 7.7% year-on-year in September, compared with a 7.5% fall in the previous month. The September month producer prices came in line with economists' expectations.

The German Business Activity Index stood at 50.7 in October, lower than the flash estimate of 50.9 and 52.1 in September. A reading above 50 indicates expansion, while a reading below 50 signals a contraction.

In France, the Markit/CDAF Services Activity Index or services PMI increased to 57.7 in October from 53.2 in September. This was the highest reading in 20-months. Economists expected a reading of 57.8 for October.

(Market News Provided by RTTNews)