CURRENCIES: Dollar Recovers Further As Euro Loses Steam

By Victor Reklaitis, MarketWatch Features Dow Jones Newswires

GDP and ADP releases grab the spotlight

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The dollar on Wednesday continued to bounce back against its major rivals, helped in part by the euro catching its breath after a strong advance.

The ICE U.S. Dollar Index -- which measures the currency against a half-dozen rivals -- rose to 92.47, up from 92.26 late Tuesday in New York. The gauge on Tuesday fell to its lowest point in more than 2 1/2 years after North Korea launched a ballistic missile over Japan, but it then erased early losses and finished little changed for the session (http://www.marketwatch.com/story/dollar-dives-to-lowest-since-early-2015-rattled-by-north-korea-missile-launch-2017-08-29).

The euro fell to $1.1948 on Wednesday, down from $1.1974 late Tuesday in New York.

The shared currency "seems to be getting altitude sickness above $1.20," said Neil Wilson, senior market analyst at ETX Capital, in a note Wednesday, referring to the euro failing to hold above that key level. "Buying pressure could be on the wane with net long speculative positions drying up."

But Wilson also said the euro's rally "could carry on, with inflation and growth looking exceedingly promising."

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See:Here's what propelled the euro above $1.20 (http://www.marketwatch.com/story/heres-whats-driving-a-resurgent-euro-rally-2017-08-28)

For the year, the dollar index is down about 9.5%, while the euro is up 14% against the buck.

Traders on Wednesday are waiting for a reading on U.S. economic growth and ADP's monthly report on private-sector jobs, as they also monitor the fallout from North Korea's latest missile launch and Hurricane Harvey.

Economists polled by MarketWatch expect the release on the gross domestic product to show 2.8% growth in the second quarter. It's due at 8:30 a.m. Eastern Time.

Meanwhile, ADP's release is slated to hit at 8:15 a.m. Eastern, and it comes ahead of Friday's much-anticipated report on U.S. nonfarm payrolls.

In other currencies trading on Wednesday, the dollar rose to Yen109.85 against the yen , up slightly from an Yen109.75 late Tuesday, while the British pound changed hands at $1.2925, up a bit from $1.2919.

(END) Dow Jones Newswires

August 30, 2017 07:08 ET (11:08 GMT)