The US dollar is mixed this morning after today’s release of higher than expected job cuts by US private employers. Since the open, the dollar has strengthened nearly .50% against the majors except for the yen, where it took a hit, and is sitting at the days lows.
With the combination of worse than expected data from both the ADP figures and a report earlier in the session showing that planned layoffs at U.S. firms increased in July for the first time in six months. Traders note that both readings may signal more uneasy times for the broader U.S. economy Markets are eagerly waiting another gauge on the state of the U.S. labor markets on Friday, with the government's release of its monthly non-farm payrolls data.
The euro strengthened against the dollar with an increase in risk appetite. The producer price index in the Eurozone rose 0.3% in June from the previous month, though it was down 6.6% from the previous year.
The British pound hit its highest level against the dollar since mid-October as it continued to benefit from earlier upbeat data on UK services sector activity and industrial production.
The Japanese yen climbed against most major currencies as risk adverse buyers have reentered the markets and favor the safe haven yen.
The Canadian dollar weakened against the dollar for the first time in four days as investors speculated gains may be overdone and oil prices take a hit for the first time in weeks.
The Australian dollar held firm as talk interest rates may be among the first in the world to rise propelled Australian-U.S. yield spreads to a one-year high.
Analysts expect the Aussie to remain range bound for the rest of the week as investors turn cautious ahead of the release of the U.S. non-farm payrolls data on Friday.
The New Zealanddollar continues to hold its strength, hitting fresh 10-month highs as recovering global dairy prices, the country's top export earner, boosted appetite for the higher yielding currency.
