Dollar subdued ahead of Friday’s jobs report
The US dollar remains subdued on firming market expectations that the Fed will continue loose monetary policy for a longer period and as ADP payrolls disappoint. Moods are cautious in equity markets today and investors look ahead to Friday’s US monthly jobs report for fresh direction. The New Zealand dollar is the strongest versus the dollar this morning following unemployment numbers which triggered expectations of rate hikes.
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EUR/USD 1.1898 GBP/USD 1.3951 USD/CAD 1.2542 AUD/USD 0.7421 USD/JPY 108.74 USD/CNH 6.4563 USD/ILS 3.2059 USD/MXN 19.8196 USD/CHF 0.9020 USD/INR 74.1875 USD/BRL 5.1702 USD/SGD 1.3474 USD/DKK 6.2501 USD/SEK 8.5667 USD/NOK 8.7775
The dollar remains trading within a 0.1% range for the third day. ADP private-sector numbers for July fell short of expectations as US companies added 330K jobs versus 653K expected. Equities were pressured following ADP data and markets will watch for Friday’s full jobs report.GBP
The pound ticked higher for a second day. The Bank of England is expected to keep rates unchanged tomorrow despite hawkish comments from some members of the committee.EUR
After losing ground earlier in the session following the downward revision of PMI’s for July, the euro attracted dip-buying to recover. Nearby support is June 18th’s low of 1.1848.CADThe dollar outperformed versus the Canadian dollar yesterday as WTI trades below $70. The pair is directed by USD sentiment as traders focus on Fed speak and US jobs numbers due out Friday.ASIA/PACIFIC
The yuan climbed versus the dollar after purchasing managers index rose to 53.1, beating analysts estimates.
The Australian dollar is higher for a third session following RBA’s announcement to continue with the plan of tapering bond purchases.
NZD was the largest gainer versus the dollar this morning as the jobless rate fell to 4%, fueling expectations of monetary tightening.
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