Forex Today: Dollar off the Yellen-induced highs, Dogecoin soars, Nonfarm Payrolls hints eyed

Here is what you need to know on Wednesday, May 5:

Markets stabilizing and the dollar is off its highs after a risk-off Tuesday, partially triggered by comments about rate hikes by US Treasury Secretary Yellen. ADP's jobs figures and the ISM Services PMI are eyed. Commodities are on the rise while cryptocurrencies are stable. 

Treasury Secretary Janet Yellen said that interest rates could rise to battle inflation if needed, in comments that caused jitters in financial markets. The former Fed Chair later clarified that her comments were not meant to predict price rises nor hikes in borrowing costs and that she respects the bank's independence. Nevertheless, the dollar jumped and stocks fell on Tuesday. 

ADP's private-sector labor market figures are set to show an increase of 872,000 positions in April, an increase from 517,000 reported in March. While the correlation between the payroll firm's data and official figures is not always evident. 

US ADP Employment Change: Caution surfaces in manufacturing

The ISM Services Purchasing Managers' Index is set to show an acceleration from an already high level of 63.7 in March. The employment component is seen as another hint toward Friday's Nonfarm Payrolls.

US ISM Services PMI April Preview: Inflation readings remain key as recovery gains strength

Virus: India continues struggling with a severe wave of COVID-19, with projections pointing to an increase in deaths in the coming days. In Europe, vaccinations continue at full speed, with Germany reporting a drop in its incidence rate. US President Joe Biden announced a change in the distribution of vaccines, aiming to reach more people in remote places. 

EUR/USD is hovering around 1.20 ahead of final services PMIs and the publication of new economic forecasts by the EU. GBP/USD is hovering around 1.39 as tensions mount toward Thursday's Bank of England decision. 

NZD/USD stood on with a jump to above 0.7150 after New Zealand reported a surprising drop in the unemployment rate to 4.7% in the first quarter of the year. 

Copper has resumed its gains, alongside other commodities. According to Bloomberg, prices are up some 70% from the March 2020 trough.

Cryptocurrencies: Bitcoin is hovering above $54,000 and Etehreum below $3,300, as digital assets trade in a range. Dogecoin stands out with another rally, hitting $0.69 at the time of writing. The crypto that began as a joke has received high-profile mentions in recent days. 

See Dogecoin Price Prediction: DOGE at make-or-break point after new all-time highs