(Updates prices, adds comment, U.S. data, changes byline,
dateline, previous LONDON)
* ADP payrolls show strong gains
* Investors wary of verbal intervention from ECB's Draghi
* Sterling at six-year highs on upbeat data
By Gertrude Chavez-Dreyfuss
NEW YORK, July 2 The dollar rose broadly on
Wednesday after a report showed the economy created the most
U.S. private sector jobs in 1-1/2 years last month.
The report boded well for Thursday's U.S. nonfarm payrolls
report, and provided a boost to the dollar, which has struggled
this year despite the Federal Reserve reducing its monthly asset
Private U.S. employers added 281,000 workers to payrolls in
June, up from 179,000 in May, payrolls processor ADP said on
Wednesday. June's gains, which topped economists' expectations
for an increase of only 200,000, were the largest since November
"While the ADP report may not be a 'game-changer', it will
leave recently established short-dollar positions somewhat
exposed and we would expect it to provide the currency with some
degree of support heading into Thursday's full employment
report," said Bob Lynch, head of currency strategy at HSBC in
In mid-morning New York trading, the dollar index rose 0.2
percent to 79.961. Against the yen, the dollar was up 0.2
percent as well at 101.70 yen.
The euro, meanwhile, fell 0.2 percent to $1.3650.
Europe's common currency also lost steam on concern policy
makers will intervene verbally to keep the currency from
strengthening. It fell to a 1 1/2-year low against the British
pound, which was again lifted by better-than-expected data.
Sterling earlier hit a six-year high against the dollar
after forecast-busting UK construction data and more evidence of
an upswing in the housing market. Both heightened expectations
that the Bank of England will tighten policy before the year's
But the pound was last flat at $1.7152, weighed down
by a strong U.S. private sector jobs report.
(Additional reporting by Anirban Nag in London; Editing by