U.S. Dollar Falls After ADP Private Sector Jobs Growth Slows
May 04 2016 - 5:27AM
RTTF2
The U.S. dollar declined against its key counterparts in
European trading on Wednesday, as a report showed that ADP private
sector jobs growth slowed more than expected in April, raising
worries that sluggish global growth may have weighed on hiring.
ADP said the private sector added 156,000 jobs in April
following an increase of 194,000 jobs in March. Economists had
expected the addition of 193,000 jobs for the month.
The report has generated some nervousness ahead of the release
of the Labor Department's more closely watched monthly jobs report
on Friday.
The Labor Department report is expected to show an increase of
about 200,000 jobs in April, while the unemployment index is
expected to edge down to 4.9 percent.
A separate report from the Commerce Department showed a notably
narrower U.S. trade deficit in the month of March.
The report said the trade deficit narrowed to $40.4 billion in
March from $47.0 billion in February. The deficit had been expected
to narrow to $41.4 billion.
The currency trended higher in the Asian session, as Atlanta Fed
chief Dennis Lockhart and San Francisco's John Williams signaled
about the possibility of a rate hike in June.
Reversing from an early 2-day high of 0.9576 against the Swiss
franc at 4:00 am ET, the greenback eased to 0.9531. The greenback
is seen finding support around the 0.92 zone.
Survey data from the UBS investment bank showed that
Switzerland's stagnating nominal house prices and a slowdown in
household debt growth dampened the housing bubble indicator in the
first quarter.
The UBS Swiss Real Estate Bubble Index fell marginally to 1.38
points in the first quarter from 1.41 in the prior quarter.
The greenback reversed from an early 2-day high of 1.1470
against the euro, edging lower to 1.1530. If the greenback slides
further, it may locate support around the 1.16 mark.
Survey data from Markit showed that the euro area private sector
expanded at a slower pace as estimated in April.
The composite output index dropped marginally to 53 in April, in
line with flash estimate, from 53.1 in March. The index signaled
expansion in each of the past 34 months.
The greenback, having advanced to a 5-day high of 107.44 against
the yen at 5:30 pm ET, reversed direction and fell to 106.25. On
the downside, 104.00 is possibly seen as the next support level for
the greenback-yen pair.
Pulling away from an early 9-day high of 1.4462 against the
pound, the greenback eased to 1.4542. The next possible support for
the greenback may be seen around the 1.46 area.
Data from Markit Economics and the Chartered Institute of
Procurement & Supply showed that British construction growth
eased more-than-expected in April to the weakest level in almost
three years.
The Markit/CIPS UK Construction Purchasing Managers' Index fell
to 52.0 in April from 54.2 in the previous month. Economists had
expected the index to drop slightly to 54.0.
After rising to a 6-day high of 0.6873 against the kiwi at 4:10
am ET, the greenback retreated to 0.6922. Continuation of the
greenback's downtrend may see it finding support around the 0.72
level.
Looking ahead, U.S. ISM non-manufacturing PMI data for April,
factory orders and durable goods orders for March and U.S. crude
oil inventories data are slated for release shortly.
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