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Forex - Dollar remains broadly lower after SNB move, ADP data

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Forexpros - The U.S. dollar remained broadly lower against its major counterparts on Wednesday, after the Swiss National Bank introduced measures to quash the franc and following a report showed that ADP non-farm payrolls rose more than expected in July.

During European afternoon trade, the greenback was lower against the euro, with EUR/USD surging 0.80% to hit 1.4317.

Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 114,000 in July, above expectations for an increase of 100,000.

The previous month's figure was revised down to a gain of 145,000 from a previously reported 157,000.

The greenback was also down against the pound, with GBP/USD climbing 0.57% to hit 1.6389.

Earlier in the day, a report showed that U.K. service sector activity rose unexpectedly in July.

Elsewhere, the greenback dipped against the yen but jumped sharply higher against the Swiss franc, with USD/JPY slipping 0.06% to hit 77.07 and USD/CHF jumping 1.25% to hit 0.7716.

The franc's losses came after Switzerland's central bank narrowed its three-month Libor rate to 0.25% from 0.75% earlier, saying the currency was "massively overvalued."

Meanwhile, investors remained wary of a possible intervention by Japanese officials after Bank of Japan Governor Masaaki Shirakawa said that the yen's recent gains posed a threat to Japan's largely export based economy.

Elsewhere, the greenback was lower against its Canadian counterpart but held gains against its Australian and New Zealand cousins, with USD/CAD sliding 0.17% to hit 0.9595, AUD/USD shedding 0.27% to hit 1.0747 and NZD/USD slipping 0.09% to hit 0.8655.

Earlier Wednesday, official data showed that Australian retail sales declined unexpectedly in June, while the country's trade surplus contracted more-than-expected.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.51%.

Later in the day, the U.S. Institute of Supply Management was to publish data on service sector growth.

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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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