The euro slid lower against the U.S. dollar on Wednesday, after the release of strong U.S. employment data added to expectations for the Federal Reserve to soon begin tapering its asset-purchase program.
EUR/USD hit 1.3524 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3548, sliding 0.30%.
The pair was likely to find support at 1.3490, the low of November 25 and resistance at 1.3622, the high of November 29.
The greenback strengthened after data showed that U.S. non-farm private employment rose at the strongest pace in nine months in November, fuelling optimism over the U.S. labor market.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 215,000 last month, blowing past expectations for an increase of 173,000.
The previous month’s figure was revised up to a gain of 184,000 from a previously reported increase of 130,000.
A separate report showed that the U.S. trade deficit narrowed to a seasonally adjusted USD40.6 billion in October, from a deficit of USD43.0 billion in September, whose figure was revised from a previously reported deficit of USD41.8 billion.
Analysts had expected the U.S. trade deficit to narrow to USD40 billion in October.
In the euro zone, official data earlier showed that retail sales fell 0.2% in October, confounding expectations for a 0.3% rise, after a 0.6% decline the previous month.
The report came after Markit said that the bloc''s final services purchasing managers'' index inched up to 51.2 in November, up from a preliminary reading of 50.9 and compared to 51.6 in October.
Germany''s services PMI rose to 55.7 in November, up from a preliminary reading of 54.5 and compared to 52.9 in October.
The euro was steady against the pound, with EUR/GBP easing 0.05% to 0.8287.
Also Wednesday, Markit said the U.K.''s services PMI fell to 60.0 in November from a reading of 62.5 in October, which was the strongest since May 1997. Analysts had expected the index to decline to 62.0 last month.
Later in the day, the Institute of Supply Management was to release its services PMI.
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