Dollar Moves In Tight Range

(RTTNews) - The U.S. dollar moved in a tight range on Wednesday, but stayed largely firm against its major counterparts, with investors reacting to the Federal Reserve's testimony before the Congress, and digesting the private sector jobs data.

Payroll processor ADP released a report this morning showing private sector employment in the U.S. increased by more than expected in the month of February.

ADP said private sector employment jumped by 242,000 jobs in February after climbing by an upwardly revised 119,000 jobs in January.

Economists had expected private sector employment to increase by 200,000 jobs compared to the addition of 106,000 jobs originally reported for the previous month.

Traders also looked ahead to the crucial non-farm payrolls data, due later in the week. Economists currently expect employment to jump by 203,000 jobs in February after surging by 517,000 jobs in January, while the unemployment rate is expected to hold at 3.4%.

The jobs data could have a significant impact on the outlook for interest rates, as the Fed has warned about labor market tightness.

The dollar index, which dropped to 105.37 this morning, recovered to 105.70 as the session progressed, netting a gain of nearly 0.1%.

Against the Euro, the dollar is up slightly at 1.0545.

The dollar is trading at 1.1843 against Pound Sterling, down from the previous close of 1.1825.

Against the Japanese currency, the dollar is trading at 137.43 yen, up from Tuesday's close of 137.15 yen.

The dollar is trading slightly weak against the Aussie, at 0.6588. The Swiss franc is up marginally against the dollar at CHF 0.9414.

Against the Loonie, the dollar is firm at C$1.3803, up from the previous close of C$1.3755. The loonie has gained marginally ahead of the Bank of Canada's interest rate decision, but turned weak after the central bank left rates unchanged.