FOREX-Euro rises on higher stocks, PMI data
* Euro rises on higher stocks, European PMIs
* Dollar briefly pares losses after private jobs data
* Markets await U.S. payrolls on Thursday
(Adds comments, details)
NEW YORK, July 1 (Reuters) - The euro rose on Wednesday, supported by higher European shares and improved manufacturing activity data in the region, but gains were limited as private employment figures in the U.S. came in worse than expected.
The European data showed a slowing in the deterioration in the euro zone's manufacturing economy for the fourth straight month as new orders shrank at a slower pace, indicating the bloc will contract by much less in the second quarter even if growth is a way off. [ID:nL1596673].
Recent gains in stocks and commodity prices, as well as more upbeat views about the global economy, have hurt demand for the U.S. dollar as a safe haven.
"The fact that we didn't get anything unpleasant in the (European) PMIs like downward revisions, is helping the euro, said Daragh Maher, senior currency strategist at Calyon in London.
In morning trading in New York, the euro EUR= was last up 0.7 percent on the day at $1.4131 as European shares rose and U.S. stock futures pointed to a higher opening on Wall Street.
On Tuesday, it rose to $1.4152, its highest since June 11, according to Reuters data.
The dollar briefly pared losses versus the European currency after a report showed U.S. private employers cut 473,000 jobs in June, more than expected but less than the 485,000 jobs lost in May. For details, see [ID:nWEN0143]
Analysts said trading would remain volatile ahead of another reading on the U.S. labor markets, the government's nonfarm payrolls report due on Thursday.
"The (ADP) number was about 80,000 worse than what was expected, so that's a pretty huge disappointment for the market," said Jacob Oubina, a currency strategist at Forex.com, in Bedminster, New Jersey. "But I would say that investors should probably take this number with a grain of salt." (Additional reporting by Wanfeng Zhou; Editing by Andrea Ricci)
