Dollar Loses Ground Against Major Counterparts After GDP Data

(RTTNews) - The U.S. dollar shed ground on Wednesday after data showed an unexpected slowdown in the nation's GDP growth. Investors also digested strong private sector employment data and looked ahead to the crucial non-farm payroll data due later in the week.

Payroll processor ADP's report showed private sector employment in the U.S. shot up by much more than anticipated in the month of October. ADP said private sector employment surged by 233,000 jobs in October after jumping by an upwardly revised 159,000 jobs in September.

Economists had expected private sector employment to climb by 115,000 jobs compared to the addition of 143,000 jobs originally reported for the previous month.

However, a separate report released by the Commerce Department showed U.S. economic growth unexpectedly slowed in the third quarter.

The Commerce Department said gross domestic product shot up by 2.8% in the third quarter after surging by 3% in the second quarter. Economists had expected another 3% jump.

A report released by the National Association of Realtors (NAR) showed pending home sales in the U.S. spiked by much more than expected in the month of September. NAR said its pending home sales index soared by 7.4% to 75.8 in September after climbing by 0.6% to 70.6 in August. Economists had expected pending home sales to jump by 1.1%.

The dollar index, which dropped to 103.98, losing more than 0.3%, was last seen at 104.02.

Against the Euro, the dollar weakened to 1.0859 from 1.0820. Against Pound Sterling, the dollar firmed to 1.2963, gaining from 1.3015.

The dollar was roughly flat against the Japanese currency, at 153.35 yen a unit. Against the Aussie, the dollar weakened to 0.6575 from 0.6561.

The Swiss franc gained marginally against the dollar at 0.8665, while the Loonie strengthened to 1.3899 a unit of the U.S. currency, firming from 1.3915.