the dollar goes up this wednesday april 5th recovering from the two-month lows reached in the previous sessionwhile investors focused their attention on the Friday’s Nonfarm Payroll Releasewhich could shed clues on the monetary policy of the Federal Reserve.
However, the underlying trend of the dollar remains bearishand the private sector employment figures American on Wednesday confirmed it. The data supported the view that the The Federal Reserve may not need to raise rates much more.
He dollar index rises 0.2% to 101.75 unitsdriven by earnings vs. euro, down 0.3% to $1.0925.
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The ADP national employment report showed that US private employers hired far fewer workers than expected in March, which suggests a cooling of the labor market. Private employment increased by 145,000 jobs last month. Economists polled by Reuters had forecast an increase in private employment of 200,000 jobs.
The data came on the heels of Tuesday’s report that showed a drop in job offers in February and an increase in layoffs.
Another report released Wednesday also pointed to a continued economic weaknessthis time in the services sector, which slowed more than expected in March as demand cooled, while a measure of the prices paid by utilities fell to their lowest level in almost three years.
He ISM non-manufacturing index fell to 51.2 last month from 55.1 in FebruaryMeanwhile he price paid component fell to 59.5 from 65.6 in Februarywith the service sector employment indicator also falling to 45.8 from 47.6 in February.
“People are realizing that the strength (in economic data) we saw in January was just a blink. It wasn’t a trend,” he said. Thierry Wizmannglobal rate and currency strategist at Macquarie in New York.
“Yes, inflation is still high, but there is plenty of ongoing evidence that disinflation is the underlying trend. (…) and part of the rationale for why the Fed is sounding ambiguous these days.”
The president of the Cleveland Federal Reserve, Loretta Mester, said in an interview with Bloomberg TV on Wednesday that it was too soon to tell whether the central bank would have to raise the benchmark rate at its next policy meeting in early May.
He dollar registered its third daily loss against the Japanese yen, with a fall of 0.6%, 130.92 units. Against the Swiss franc, the greenback fell 0.1%.
Source: Ambito
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