After the French government fell due to a parliamentary vote of no confidence, the euro nearly erased all its previous gains, and the dollar also weakened in Wednesday's New York forex market. The australian dollar lagged behind among G-10 currencies.

The euro/USD remained essentially flat at 1.0511, having briefly risen 0.3% ahead of the French parliamentary vote.

The French parliament passed a vote of no confidence against the government of Michel Barnier, resulting in the fall of the government.

"The moderate market reaction further indicates that many negative factors have already been priced into the euro," said Valentin Marino, head of G-10 forex strategy at the oriental bank. He mentioned that the market's focus will shift to Friday's U.S. non-farm payroll data and next week's European Central Bank meeting.

The Bloomberg dollar spot index dipped slightly on Wednesday.

U.S. service sector activity in November expanded at the slowest pace in three months, with demand and employment growth slowing, indicating that the largest component of the economy is losing momentum.

"This is the first truly weak U.S. data in a while, but I don't think it will have much impact on Federal Reserve policy," said Win Thin, managing director at Brown Brothers Harriman.

Data from the ADP Research Institute revealed that the wage growth for the smallest U.S. businesses in November saw its first acceleration since early last year.

The usd/jpy rose by 1.1% to 151.23, reaching its highest level since November 29, before falling back to 150.36, with the increase narrowing to 0.5%.

The gbp/usd fell to an intraday low of 1.2630 before reversing its downturn; following reports that central bank governor Andrew Bailey expects four rate cuts next year, traders increased their bets on rate cuts, leading to a decline in the british pound.

The currency pair rose by 0.2% to 1.2702.

The aud/usd fell by 0.8% to 0.6436, following data showing that the australian economy expanded at a slower pace than expected in the three months ending in September.

"Given the global geopolitical and trade risks in 2025, we are bullish on the downside risk hedging of aud/usd," stated Vadim Iaralov from bank of america in a report.

Note: The above information comes from forex traders who understand the trading situation but are unwilling to be named due to lack of public commentary authorization.