The greenback fell on Wednesday versus the euro in reaction to mixed US economic data and indication of further quantitative easing by US Federal Reserve. The US dollar fell after the report of the Wall Street Journal in which it was disclosed that US Fed will opt for new bond purchasing program in which long term Treasury or mortgage bonds will be purchased but the money will be tied up by borrowing for short term periods at low rates.

It is anticipated by the US central bank that new bond purchasing program will eliminate the negative impact of quantitative easing on currency which was highly criticized in earlier two QE programs. The US dollar did get some strength on latest jobs data by ADP according to which private sector jobs increased by 216,000 in month of February which was in line with target.

The dollar index DXY which measures the US dollar’s performance versus its six major rival currencies declined to 79.692 on Wednesday as compared to 79.843 on Tuesday’s North American trading session.

The single currency gained to 1.3154 against the greenback on Wednesday as compared to 1.3111 on Tuesday’s late trading hours. The euro also gained against the Japanese yen to 106.80 on Wednesday as compared to 105.97 on late Tuesday.

Among other currencies, the British Pound gained 0.2 percent versus the US dollar to 1.5743 on Wednesday. Against the Japanese yen, the US dollar fell to 81.21 on Wednesday as compared to 80.81 on late Tuesday.

List of events to affect the trading of the British Pound for the week ending February 3rd, 2012 is as follows:

On Monday, in United States, data on personal consumption expenditure was published while in United Kingdom report on home track housing survey was published. On Tuesday, in United States, data on consumer confidence was published.

On Wednesday, February 1^st, 2012, in United States, data on employment change by ADP is to be released while US Department of Energy will report its weekly data on crude oil, gasoline and distillates inventories. ISM’s manufacturing index is also expected on Wednesday. Moreover data on construction spending will also be published in United States.

In United Kingdom, data on house prices is to be reported.

On Thursday, February 2^nd, 2012, in United States, several economic indicators will be released which will include data on domestic and total vehicle sales, RBC Consumer outlook index, nonfarm productivity, weekly data on jobless claims, EIA data on natural gas supplies and data on job cuts. Moreover, US Federal Reserve’s Chairman Ben Bernanke will give his statement before House Budget Committee on Thursday. In United Kingdom, purchasing managers’ index will be released.

On Friday, February 3^rd, 2012, in United States, data on average hourly earnings, non-farm payrolls, unemployment rate and data on factory orders will be published while Institute of Supply and Management will publish its report on non manufacturing sector.

In United Kingdom data on purchasing managers index for services sector and country’s official reserves will be reported.

Major events to affect the trading of the pair EURUSD are as follows:

On Monday, in europe, data on German consumer price index was released. Data on consumer confidence and business climate indicator was also released in the europe while in United States, data on personal consumption expenditure was published

On Tuesday, data on unemployment rate and retail sales was published in europe while in United States, data on consumer confidence was published.

On Wednesday, February 1^st, 2012, German purchasing managers’ index on manufacturing sector is to be published in the euro zone with separate data on purchasing managers’ index for manufacturing and consumer price index for the single currency region. France and Italy will also their separate data on purchasing manager index for manufacturing sector.

In United States, data on employment change by ADP is to be released while US Department of Energy will report its weekly data on crude oil, gasoline and distillates inventories. ISM’s manufacturing index is also expected on Wednesday. Moreover data on construction spending will also be published in United States.

On Thursday, February 2^nd, 2012, euro zone will publish its data on producer price index while in Switzerland data on country’s trade balance will be reported. In United States, several economic indicators will be released which will include data on domestic and total vehicle sales, RBC Consumer outlook index, nonfarm productivity, weekly data on jobless claims, EIA data on natural gas supplies and data on job cuts. Moreover, US Federal Reserve’s Chairman Ben Bernanke will give his statement before House Budget Committee on Thursday.

On Friday, February 3^rd, 2012, for euro exchange rate, purchasing managers’ index for services sector will be reported while Italy, France and Germany will release their separate reports on services sector PMI. Euro zone will also release its data on retail sales.

In United States, data on average hourly earnings, non-farm payrolls, unemployment rate and data on factory orders will be published while Institute of Supply and Management will publish its report on non manufacturing sector.

US dollar gained on Wednesday as the latest data on factory orders for the month of July came out to be better than analysts’ expectations. As per latest report of US Commerce Department orders of goods produced increased by 2.4 percent for the month July. Chicago PMI stood at 56.5 percent for the month of August as compared to 58.8 percent in July, however it surpassed the analysts’ expectations of 53 percent.

The dollar index DXY which measures the US dollar’s performance against is major six rival currencies jumped to 74.162 on Wednesday as compared to 73.968 on Tuesday’s North American trading session.

The euro declined versus the greenback to 1.4369 on Wednesday as compared to 1.4442 on Tuesday’s late trading hours. The British Pound also fell against the US dollar to 1.6247 on Wednesday as compared to 1.6310 on late Tuesday.

Against the Japanese Yen the US dollar declined to 76.58 as compared to 76.67on Tuesday’s late trading hours.

The US dollar was under a bit pressure in reaction to latest ADP report according to which companies in United States hired 91,000 workers which disappointed analysts on wide.

Director of currency research, Kathy Lien from GFT commented, “ADP has been a poor predictor of nonfarm payrolls but everyone was relieved to see that there was not a huge change in private sector job growth, If ADP fell to 50,000, we would have probably seen the dollar sell off aggressively. But the number wasn’t bad,” she further added, “The data doesn’t suggest the need for any position adjustments ahead of Friday’s nonfarm payrolls report.”