Dollar falls broadly on continues long liquidation after soft U.S. private payrolls data: Jan 06, 2017

Market Review - 05/01/2017  22:25GMT 

Dollar falls broadly on continues long liquidation after soft U.S. private payrolls data

The greenback dropped across the board on Thursday after the release of downbeat U.S. private employment data raised concerns over the country's economic growth. 

Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 153,000 last month, below forecasts for an increase of 170,000. The economy created 216,000 jobs in November. 

Versus the Japanese yen, the greenback tumbled at Asian open and continued to remain under pressure and dropped to 115.58 ahead of European open. Despite a brief but sharp recovery to 116.78 in Europe, price met renewed selling and tanked to session lows of 115.22 in New York morning on dollar's broad-based weakness post the release of downbeat U.S. data, price later moved sideways in New York afternoon session. 

Although the single currency rose to 1.0541 at Asian open, then to 1.0575 ahead of European open, price pared its losses and retreated sharply to 1.0483 ahead of New York Open. However, euro found renewed support there and rallied to day's high of 1.0615 in New York morning on dollar's broad-based weakness and then moved narrowly. 

The British pound rose at Asian open in tandem with euro and hit 1.2364 ahead of European open before tumbling to an intra-day low at 1.2271 due to cross-selling of sterling especially vs euro. However, cable pared its losses and rebounded strongly on upbeat UK services PMI and then rallied further in New York to session high of 1.2432 on dollar's weakness but later traded narrowly. 

Market research group Markit said the seasonally adjusted Markit/CIPS services purchasing managers' index (PMI) unexpectedly rose to 56.2 last month from a reading of 55.2 in November. Analysts had expected the index to fall to 54.7. 

In other news, BoE's Haldane said 'UK consumer behaviour last year almost as though Brexit vote never happened; reasonable grounds to think 2017 will be harder for consumer than 2016; effect of hefty fall of exchange rate is beginning to trickle through to UK prices; likely that higher UK inflation will lead to slowing in consumer spending, not inevitable; strength of UK stock market may reflect signs of rebalancing economic policy away fm monetary policy.' 

Data to be released on Friday: 

Australia exports, imports, trade balance, Germany industrial orders, France exports, imports, trade balance, current account, EU retail sales, business climate, economic sentiment, industrial sentiment, consumer confidence, Canada unemployment, exports, imports, trade balance, Ivey PMI, U.S. non-farm payrolls, private payrolls, unemployment rate, average earnings and factory orders.