2020.01.0820:49:00UTC+00Dollar Continues To Exhibit Strength

The U.S. dollar stayed firm against major currencies on Wednesday, extending gains to a second straight session, as concerns about geopolitical tensions eased and data showed a bigger than expected jump in private sector employment in the U.S.

According to a report from payroll processor ADP, U.S. private sector employment rose by 202,000 jobs in December after climbing by a substantially upwardly revised 124,000 jobs in November.

Economists had expected employment to increase by about 160,000 jobs compared to the addition of 67,000 jobs originally reported for the previous month.

On the geopolitical front, President Donald Trump delivered a statement responding to last night's attack by Iran on several U.S. military bases in Iraq. Trump said U.S. would hit Iran with new sanctions but not respond militarily.

Trump confirmed earlier reports that there were no American casualties as a result of Iran's missile strikes.

Iran's attack initially raised concerns about an escalation of the confrontation between the U.S. and Iran.

However, Trump said, "Iran appears to be standing down," which he called a "good thing for all parties concerned and a very good thing for the world."

The latest remarks by Trump reflect a significant shift from recent comments by the president threatening to use military force in response to Iran's retaliation for the U.S. killing of Quds Force Commander Qasem Soleimani last week.

The dollar index opened weak, but rose to 97.32 as the day progressed, gaining about 0.32%.

Against Euro, the dollar strengthened to $1.1111, gaining nearly 0.4%. Data from Destatis showed that Germany's factory orders decreased unexpectedly in November and survey results from the Statistical Office showed French consumer confidence deteriorated for the first time in a year in December.

The dollar firmed up against the Sterling as well, rising to $1.3095, up 0.2% from Tuesday's close.

Against the Japanese Yen, the dollar rose with a unit of the currency fetching 109.14 yen, compared to 108.46 yen on Tuesday.

The dollar was little changed against the Aussie at 0.6869. Against the Loonie and Swiss Franc, the dollar was notably higher at 1.3038 and 0.9738, respectively.