The U.S. dollar depreciated against its most major counterparts in the European session on Wednesday, weighed by a fall in treasury yields ahead of the Federal Reserve's monetary policy decision that is expected to signal a reduction in its monthly bond purchases.

The Federal Reserve began its two-day monetary policy meeting on Tuesday and will deliver its decision at 2:00 pm ET.

The Fed is expected to announce a tapering of asset purchases following its policy meeting, but economists are split over the timing of raising rates.

Data from payroll processor ADP showed that U.S. private sector employment increased more than expected in the month of October.

ADP said private sector employment jumped by 571,000 jobs in October after surging by a revised 523,000 jobs in September.

Economists had expected private sector employment to climb by 400,000 jobs compared to the addition of 568,000 jobs originally reported for the previous month.

The greenback showed mixed performance against its major peers in the Asian session. While it held steady against the euro and the franc, it dropped versus the pound and the yen.

The greenback pulled back to 113.72 against the yen, from a high of 114.01 hit at 7 pm ET. The pair had closed Tuesday's deals at 113.95. If the greenback slides further, 112.00 is likely seen as its next support level.

The greenback fell to 1.3664 against the pound from yesterday's close of 1.3610. The greenback may locate support around the 1.39 level.

Final survey results from IHS Markit showed that the UK service sector registered a sharp growth momentum in October driven by robust new work amid the reopening of the economy and looser international travel restrictions.

The headline Chartered Institute of Procurement & Supply services Purchasing Managers' Index rose to 59.1 in October from 55.4 in September. The flash reading was 58.0.

The greenback edged down to 0.9106 against the franc, after touching a 2-day high of 0.9151 in the Asian session. At yesterday's trading close, the pair was quoted at 0.9145. Further decline in the currency may find support near the 0.90 mark.

The greenback declined to 0.7147 against the kiwi from Tuesday's close of 0.7108. Next key support for the greenback is likely seen around the 0.74 level.

Data from Statistics New Zealand showed that New Zealand unemployment rate came in at 3.4 percent in the third quarter of 2021 - beneath expectations for 3.9 percent and down from 4.0 percent in the three months prior.

The employment change was 2.0 percent on quarter, exceeding expectations for an increase of 0.4 percent and accelerating from 1.0 percent in the previous three months.

In contrast, the greenback appreciated to 1.2446 versus the loonie, its highest level since October 14. The greenback was trading at 1.2403 against the loonie at yesterday's close. Should the currency rises further, 1.26 is seen as its next resistance level.

The greenback rebounded to 0.7428 versus the aussie, from a low of 0.7451 hit at 4:15 am ET. The greenback is seen finding resistance around the 0.72 level.

Data from the Australian Bureau of Statistics showed that Australia building permits fell a seasonally adjusted 4.3 percent on month in September - coming in at 18,090.

That missed expectations for a decline of 2.0 percent following the 6.8 percent increase in August.

The greenback touched a 2-day high of 1.1569 against the euro, up from Tuesday's close of 1.1579. The greenback is poised to find resistance around the 1.13 level.

Data from Eurostat showed that the euro area unemployment rate dropped marginally in September.

The jobless rate fell to a seasonally adjusted 7.4 percent in September from 7.5 percent in August. The rate came in line with economists' expectations.

U.S. ISM services PMI for October and factory orders for September will be out in the New York session.

At 2:00 pm ET, the Fed announces its decision on interest rate. Economists widely expect the federal funds rate to be kept at 0-0.25 percent.

Grafico Cross US Dollar vs CAD (FX:USDCAD)

Da Dic 2021 a Gen 2022 Clicca qui per i Grafici di US Dollar vs CAD
Grafico Cross US Dollar vs CAD (FX:USDCAD)

Da Gen 2021 a Gen 2022 Clicca qui per i Grafici di US Dollar vs CAD