Shutterstock photo
Markets

Dollar turns mixed vs. rivals after weak U.S. data

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - The dollar turned mixed against the other major currencies on Wednesday, as the release of weak U.S. economic reports dented demand for the greenback, although caution ahead of the European Central Bank's policy meeting still supported safe-haven demand.

The dollar was steady against the euro, with EUR/USD easing 0.02% to 1.3626.

Payroll processing firm ADP said non-farm private employment rose by 179,000 in May, below expectations for an increase of 210,000. April's figure was revised down to a gain of 215,000 from a previously reported increase of 220,000.

A separate report showed that U.S. trade deficit widened to $47.24 billion in April, from $44.18 billion in March whose figure was revised from a previously estimated deficit of $40.40 billion. Analysts had expected the trade deficit to widen to $40.80billion in April.

Meanwhile, sentiment on the euro remained vulnerable after Eurostat on Tuesday said consumer price inflation in the euro zone increased by 0.5% last month, down from 0.7% in April and missing expectations for a reading of 0.7%. The rate stands well below the ECB target of near but just under 2%.

The report added to expectations that the ECB will take steps to tackle low consumer price growth, which is threatening the fragile recovery in the euro zone.

Earlier Wednesday, Markit said Germany's services purchasing managers' index fell to 56.0 in May from 56.4 in April, confounding expectations for the index to remain unchanged.

Separately, Spain's services PMI fell to 55.7 in May, from a reading of 56.5 the previous month, while Italy's services PMI rose to 51.6 last month, from 51.1 in April.

The pound edged higher against the dollar, with GBP/USD up 0.09% to 1.6765.

Sterling strengthened mildly after Markit said the U.K. services PMI slipped to 58.6 last month, from a reading of 58.7 in April, compared to expectations for a fall to 58.2.

The dollar was little changed against the yen, with USD/JPY dipping 0.03% to 102.48 and fractionally lower against the Swiss franc, with USD/CHF edging down 0.08% to 0.8956.

The greenback was mixed against the Australian, New Zealand and Canadian dollars, with AUD/USD rising 0.21% to 0.9285, NZD/USD easing 0.09% to 0.8424 and USD/CAD gaining 0.24% to 1.0934.

In Canada, official data showed that the trade balance swung into a deficit of C$0.64 billion in April, from a surplus of C$0.77 billion in March whose figure was revised from a previously estimated surplus of C$0.08 billion.

Analysts had expected the trade surplus to narrow to C$0.10 billion in April.

The Aussie found support after official data earlier showed that Australia's gross domestic product expanded at a rate of 1.1% in the first quarter, after 0.8% growth in the three months to December, compared to expectations for an expansion of 0.9%.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% to 80.57.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx