The dollar weakened on profit-taking ahead of crucial data

The dollar weakened on profit-taking ahead of crucial data

The dollar weakened on Tuesday ( Wednesday morning GMT ) , as investors await some important data this week that could provide clues about when the Federal Reserve to reduce its massive stimulus .

The euro rose to 1.3589 dollars around 22:00 GMT ( Wednesday at 5:00 pm ) from 1.3539 dollars at the same time on Monday ( 2/12 ) .

The dollar fell to 102.48 yen from 102.94 yen , while the euro edged down to 139.27 yen from 139.38 yen .

" With no U.S. economic data scheduled for release today , profit-taking ( profit taking ) pushed the dollar lower , " said Kathy Lien of BK Asset Management told AFP .

Lien said the market's focus will begin to shift to the U.S. labor market on Wednesday with the release of the ADP report on private sector job creation , service sector data from the Institute for Supply Management ( ISM ) and the Federal Reserve's Beige Book report on economic conditions .

" These are the three most important leading indicator for non - farm payroll report on Friday , " he said .

Investors are hoping that the November jobs report from the Labor Department on Friday will provide clues about when the Federal Reserve will begin to reduce its asset purchase program 85

billion dollars per month . Some analysts say it could happen in the Fed's monetary policy meeting on December 17 to 18 .

Lien highlights the news that the Chinese yuan has taken over the position of the euro becomes the currency most used in international trade finance , after the dollar .

The market share of the yuan , also known as the renminbi ( RMB ) , in traditional financial trading reached 8.66 percent in October , exceeding the euro at 6.64 percent , the Society for Worldwide Interbank Financial Telecommunication ( SWIFT ) said on Tuesday .

" While the actual trade in currencies remained very small compared with the main currency , use the currency to trade increased rapidly , especially since the Chinese are looking for a way to eliminate the exchange rate risk and reduce the use of the dollar , " said Lien .

" At the same time , the yuan currency contracts are also becoming increasingly popular , a trend that is not expected to change . "

The dollar fell against the Swiss currency , becomes 0.9041 francs from 0.9085 francs late Monday . The pound rose to 1.6390 dollars from 1.6354 dollars .