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Forex - Dollar Remains Broadly Lower After Mixed U.S. Data

Published 01/04/2018, 08:36 AM
Dollar still on the downside after U.S. ADP, jobless claims reports
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Investing.com - The dollar remained broadly lower against other major currencies on Thursday, after the release of mixed U.S. employment data.

Payrolls processor ADP reported on Thursday that U.S. private employers added 250,000 jobs in December, well above economists' expectations.

A separate report showed that U.S. jobless claims increased by 3,000 last week to 250,000, disappointing expectations for a 6,000 decline.

The U.S. dollar briefly recovered after Fed policymakers acknowledged, in the minutes of the Federal Reserve's December meeting released Wednesday, that the U.S. labor market and economic activity remain strong, despite persistently low inflation.

The minutes seemed to suggest that the central bank will continue to raise rates gradually but the pace could pick up if inflation rises.

Market watchers were now looking ahead to U.S. nonfarm payrolls data due on Friday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.22% at 91.69 by 08:35 a.m. ET (12:35 GMT).

The euro and the pound remained higher, with EUR/USD up 0.37% at 1.2059 and with GBP/USD adding 0.17% to 1.3538.

Earlier Thursday, data showed that UK consumer lending slowed to its weakest since 2015 in the three months to November, while service sector activity picked up in November.

The yen turned lower, with USD/JPY up 0.26% at 112.79, while USD/CHF slipped 0.16% to 0.9757.

Elsewhere, the Australian dollar was weaker, with AUD/USD down 0.11% at 0.7826, while NZD/USD gained 0.34% to 0.7115.

Meanwhile, USD/CAD was almost unchanged at 1.2534.

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