US Session – Dollar reverses ADP driven gains and weakens after ISM services
December 4, 2013 9:38 pm
Trading was choppy in the US session for the dollar which swung from highs to lows on mixed US data.
The dollar initially rose on ADP jobs numbers which beat forecasts and raised prospects for a solid nonfarm payrolls report on Friday, which in turn would raise expectations for Fed tapering soon. Data showed private sector hiring in the US rose by a seasonally adjusted 215,000 in November, above expectations for an increase of 173,000.
However all gains for the greenback were wiped out after the ISM non-manufacturing index fell in November from October, and showed the employment component of the index fell to its lowest since May.
The dollar fell against the yen to end the US session down 0.05% at 102.24 and down 0.2% on the day.
The euro rebounded against the broadly weaker dollar, to end the day flat at 1.3585 but down 0.08% in the US session. A key driver for the euro on Thursday will be the European Central Bank policy meeting.
The pound was down 0.04% on the day at 1.6382 but up 0.09% in the US session thanks to the weak dollar. Sterling was under pressure earlier in the day after the UK service sector PMI fell more-than-expected in November, and investors awaited the Bank of England policy meeting on Thursday.
The aussie stayed weak after disappointing GDP data showed the Australian economy expanded less in the third quarter than forecast. AUDUS was down 1.1% on the day to 0.9032.
The loonie slid to its weakest in 3 years versus the greenback after Bank of Canada Governor Poloz commented on the risks of low inflation and raised speculation for a rate cut. USDCAD ended up 0.2% at 1.0677.
Trading was choppy in the US session for the dollar which swung from highs to lows on mixed US data.
The dollar initially rose on ADP jobs numbers which beat forecasts and raised prospects for a solid nonfarm payrolls report on Friday, which in turn would raise expectations for Fed tapering soon. Data showed private sector hiring in the US rose by a seasonally adjusted 215,000 in November, above expectations for an increase of 173,000.
However all gains for the greenback were wiped out after the ISM non-manufacturing index fell in November from October, and showed the employment component of the index fell to its lowest since May.
The dollar fell against the yen to end the US session down 0.05% at 102.24 and down 0.2% on the day.
The euro rebounded against the broadly weaker dollar, to end the day flat at 1.3585 but down 0.08% in the US session. A key driver for the euro on Thursday will be the European Central Bank policy meeting.
The pound was down 0.04% on the day at 1.6382 but up 0.09% in the US session thanks to the weak dollar. Sterling was under pressure earlier in the day after the UK service sector PMI fell more-than-expected in November, and investors awaited the Bank of England policy meeting on Thursday.
The aussie stayed weak after disappointing GDP data showed the Australian economy expanded less in the third quarter than forecast. AUDUS was down 1.1% on the day to 0.9032.
The loonie slid to its weakest in 3 years versus the greenback after Bank of Canada Governor Poloz commented on the risks of low inflation and raised speculation for a rate cut. USDCAD ended up 0.2% at 1.0677.
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