US Session – Dollar holds onto gains after better ADP jobs data
July 3, 2013 8:02 pm
The dollar traded higher against the yen during the U.S. session on Wednesday, bouncing off earlier lows, after being lifted by better-than-expected jobs data.
The private payrolls processor ADP reported more jobs were created in June, with the U.S. economy gaining 188,000 positions from the prior month’s 134,000 and beat forecast of 161,000 jobs.
A separate report released later in the session showed U.S. initial jobless claims for past week fell by 5,000 to 343,000 applications for first time benefits. Expectations were for a slight drop to 345,000 last week.
The positive data pushed USDJPY to a high of 100.12, rebounding from an intraday low of 99.24 yen. The pair reversed some gains after a disappointing ISM manufacturing report. The index came in at a weaker-than-expected 52.2 percent in June, signalling slower-than-expected growth.
However, the dollar bulls were overtaken by sellers, with the pair easing back down to 99.78 by the end of the U.S. trading session, but still higher than the session open of 99.69 yen.
Focus now turns to the key nonfarm payrolls data on Friday. These jobs numbers will be closely watched by the Federal Reserve in order to judge how soon it can taper stimulus.
The euro rose against the dollar as investors positioned themselves ahead of the European Central Bank’s monthly policy meeting on Thursday and June U.S. nonfarm payrolls on Friday. EURUSD hit a session high of $1.3030, moving off a one-month low of $1.2922 hit earlier today.
The euro has had a choppy day after disappointing PMI data as well as political uncertainty in Portugal which is reigniting fears of the debt crisis in the Euro zone.
Sterling outperformed and continued to advance higher against the dollar, boosted by stronger-than-expected U.K. services PMI numbers today. GBPUSD climbed to a high of $1.5303 from a day low of $1.5129, also buoyed by a softer dollar late in the New York session.
The dollar traded higher against the yen during the U.S. session on Wednesday, bouncing off earlier lows, after being lifted by better-than-expected jobs data.
The private payrolls processor ADP reported more jobs were created in June, with the U.S. economy gaining 188,000 positions from the prior month’s 134,000 and beat forecast of 161,000 jobs.
A separate report released later in the session showed U.S. initial jobless claims for past week fell by 5,000 to 343,000 applications for first time benefits. Expectations were for a slight drop to 345,000 last week.
The positive data pushed USDJPY to a high of 100.12, rebounding from an intraday low of 99.24 yen. The pair reversed some gains after a disappointing ISM manufacturing report. The index came in at a weaker-than-expected 52.2 percent in June, signalling slower-than-expected growth.
However, the dollar bulls were overtaken by sellers, with the pair easing back down to 99.78 by the end of the U.S. trading session, but still higher than the session open of 99.69 yen.
Focus now turns to the key nonfarm payrolls data on Friday. These jobs numbers will be closely watched by the Federal Reserve in order to judge how soon it can taper stimulus.
The euro rose against the dollar as investors positioned themselves ahead of the European Central Bank’s monthly policy meeting on Thursday and June U.S. nonfarm payrolls on Friday. EURUSD hit a session high of $1.3030, moving off a one-month low of $1.2922 hit earlier today.
The euro has had a choppy day after disappointing PMI data as well as political uncertainty in Portugal which is reigniting fears of the debt crisis in the Euro zone.
Sterling outperformed and continued to advance higher against the dollar, boosted by stronger-than-expected U.K. services PMI numbers today. GBPUSD climbed to a high of $1.5303 from a day low of $1.5129, also buoyed by a softer dollar late in the New York session.
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