USD – The dollar weakened across the board on Wednesday, as ADP Non-Farm Payrolls disappointed at 374K versus consensus of 640K. Commenting on the release and the upcoming NFP report on Friday, Western Union noted that “Certainly the recovery has been uneven but if nonfarm payrolls should also disappoint, that would seemingly close the door to an imminent taper and keep the dollar in a bit of a funk.”

EUR – The single currency reached fresh one-month highs on Wednesday, as EU inflation worries persisted following yesterday’s decade-high print of 3.0% Y/Y. Commenting on the implications for the ECB, Western Union argues that “We have seen numbers that argue against keeping policy so low for so long and that has been helping the euro… it is certainly going to heighten the focus on the QE debates next week when we hear from the ECB.”