The U.S. dollar was higher against its major counterparts in the European session on Wednesday, as Treasury yields ticked up on hopes that U.S. fiscal stimulus and vaccine rollouts will boost the global economic recovery and spur inflation.

U.S. President Joe Biden said Tuesday that the U.S. expects to take delivery of enough coronavirus vaccines for all adults by the end of May, two months earlier than anticipated, after Merck & Co agreed to produce rival Johnson & Johnson's newly approved shot.

Biden also announced he would be using the powers of the federal government to direct all states to prioritize vaccinating teachers, and said the federal government would provide the doses directly through its pharmacy program.

Investors cheered progress in the $1.9 trillion relief package, which will be taken up by the Senate later in the day.

Democrats are racing to get it approved before March 14, when some aid expire.

Data from payroll processor ADP showed that U.S. private sector employment increased much less than expected in February.

ADP said private sector employment rose by 117,000 jobs in February after climbing by an upwardly revised 195,000 jobs in January.

Economists had expected employment to increase by 177,000 jobs compared to the addition of 174,000 jobs originally reported for the previous month.

The Labor Department is scheduled to release its more closely watched monthly employment report on Friday, which includes both public and private sector jobs.

The dollar gained in the Asian session as accelerated vaccine rollouts and coronavirus aid package boosted hopes of the economic recovery.

The greenback appreciated to 0.9189 against the franc and 1.2043 against the euro, after falling to 0.9140 and a 5-day low of 1.2113, respectively in early deals. The greenback is seen finding resistance around 0.94 against the franc and 1.18 against the euro.

The greenback reversed from an early 5-day low of 1.4007 against the pound, with the pair trading at 1.3942. On the upside, 1.37 is possibly seen as its next resistance level.

Survey results from IHS Markit and Chartered Institute of Procurement & Supply showed that the UK service sector output declined only moderately in February after a sharp downturn at the start of 2021, as the third national lockdown has caused limited damage to the economy.

The final services Purchasing Managers' Index rose to 49.5 in February from an eight-month low of 39.5 in January. The flash score was 49.7.

The greenback edged up to 0.7245 against the kiwi, 0.7771 against the aussie and 1.2658 against the loonie, up from its prior low of 0.7305, 5-day lows of 0.7838 and 1.2593, respectively. If the greenback rises further, 0.70, 0.75 and 1.20 are possibly seen as its next resistance levels against the kiwi, the aussie and the loonie, respectively

The greenback touched 107.08 against the yen, its highest level since July, 2020. The currency is poised to find resistance around the 109 level.

The latest survey from Jibun Bank showed that Japan services sector continued to contract in February, albeit at a slower pace, with a services PMI score of 46.3.

That's up from 46.1 in January, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

U.S. ISM non-manufacturing PMI for February will be published at 10:00 am ET.

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