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Forex - Dollar broadly lower after worse-than-expected U.S. data

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Forex Pros - The U.S. dollar was broadly lower against its major counterparts on Wednesday, following reports showing that U.S. private sector employment growth slowed sharply and manufacturing activity slumped to a one-year low in May.

During early U.S. trade, the greenback was lower against the euro, with EUR/USD climbing 0.2% to hit 1.4426.

Earlier, European Union Economic Affairs Commissioner Olli Rehn reiterated that a default was not in the cards for Greece and said Athens would need to carry on with its plans to sharply reduce its budget deficit and privatize government-owned businesses.

But the greenback was higher against the pound, with GBP/USD slipping 0.28% to hit 1.6401.

Earlier in the day, official data showed that manufacturing activity in the U.K. grew at its slowest rate in 20 months in May.

Meanwhile, the greenback was down against the yen and the Swiss franc with USD/JPY dropping 0.82% to hit 80.85 and USD/CHF tumbling 1.5% to hit a fresh record low of 0.8408.

Official data released earlier showed that Swiss retail sales surged in April, while Swiss manufacturing activity rose unexpectedly in May.

In addition, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.11% to hit 0.9672, AUD/USD climbing 0.70% to hit 1.0746 and NZD/USD easing up 0.07% to hit 0.8243.

The Aussie was boosted after government data showed that the nation's economic growth contracted less-than-expected in the first quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.24%.

Earlier Wednesday, payroll processing firm ADP said U.S. non-farm payrolls rose just 38K in May, on a seasonally adjusted basis, far below expectations for an increase of 178K.

Elsewhere, the U.S. Institute for Supply Management said its index of national factory activity fell to 53.5 in May from 60.4 the month before. The reading disappointed expectations for 57.7.

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

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