The greenback traded mixed against its peers on Wednesday due partly to the release of soft U.S. data and investors remained cautious ahead of U.S. jobs report on Friday.
On the data front, Reuters reported U.S. private payrolls rose by 742,000 jobs last month, the ADP National Employment Report showed on Wednesday. Data for March was revised higher to show 565,000 jobs added instead of the initially reported 517,000. Economists polled by Reuters had forecast private payrolls would increase by 800,000 jobs in April.
Reuters reported the Institute for Supply Management (ISM) said on Wednesday its non-manufacturing activity index fell to a reading of 62.7 last month from 63.7 in March, which was the highest on record. A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity. Economists polled by Reuters had forecast the index rising to 64.3 in April. In other news, Reuters said that the inflation will be temporarily distorted this spring as the U.S. economy works through imbalances caused by the pandemic but the pressures should be short-lived and should not lead to a pullback in monetary policy, Boston Federal Reserve Bank President Eric Rosengren said on Wednesday.
Versus the Japanese yen, although dollar rose from 109.20 in Asia to 109.47 at European open, price erased intra-day gains and fell to session lows of 109.15 in New York morning due to weakness in U.S. Treasury yields as well as cross-buying in jpy before recovering to 109.31.
The single currency rebounded from 1.2011 in Australia to 1.2026 in Asia, however, the pair then fell to a 2-week low of 1.1987 in European morning on usd's strength together with cross-selling in euro before recovering to 1.2019 but only to weaken again to 1.1992 in New York afternoon.
The British pound initially rose from 1.3885 in Australia to 1.3914 in Asia before falling to session lows of 1.3877 in Europe. The pair then erased intra-day losses and rallied to 1.3926 on broad-based retreat in usd together with cross-selling in sterling before trading broadly sideways in New York.
Data to be released on Thursday :
New Zealand building permits, ANZ business confidence, ANZ activity outlook, Germany industrial orders, U.K. markit services PMI, BOE interest rate decision, asset purchase program, BOE QE total, BOE QE corporate bond purchases, BoE MPC ote hike, BoE MPC vote unchanged, BoE MPC vote cut, EU retail sales, U.S. initial jobless claims, continuous jobless claims, labour costs, productivity.
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