U.S. Dollar Pares Gain Against Franc, Yen After ADP Data
March 04 2015 - 9:41AM
RTTF2
The U.S. dollar retraced early gains against the yen and the
franc on Wednesday's European deals, as U.S. private sector
employment growth slowed more than expected in February. Markets
now gear up for key U.S. jobs data on Friday, to assess improvement
in labour.
Payroll processor ADP released a report showing that the pace of
U.S. private sector job growth showed a notable slowdown in
February compared to the previous month.
Employment increased by 212,000 jobs last month, below January's
revised gain to 250,000, the data showed. This is down from the
expected increase of about 220,000 jobs for the month.
The ADP figures are considered a key prelude to the official
U.S. jobs report, which comes out Friday morning from the Labor
Department.
These reports serve as guide to the Federal Reserve regarding
the state of the U.S. labor market, which it will use to consider
the timing of rate hike.
Uncomfortably low inflation and uncertain global environment
poses significant risks to premature rate hike, Federal Reserve
Bank of Chicago President Charles Evans said at an event in Lake
Forest, Ill.
"We should be patient in raising interest rates," Evans said,
adding that "I think economic conditions will evolve in a way such
that it will be appropriate to delay normalizing monetary
policy-that is, to hold off on raising short-term rates-until
2016."
Having advanced to a 1-1/2-month high of 0.9634 against the
franc in early deals, the greenback eased to 0.9598. The next
possible downside target for the greenback-franc pair is seen
around the 0.94 mark.
The greenback pared gains to 119.47 against the Japanese yen,
from an early high of 119.82. If the greenback-yen pair continues
slide, 118.00 is seen as its next support level.
The greenback firmed to 1.1104 against the euro, a level not
seen since September 2003. The next possible resistance for the
greenback may be located near the 1.10 region.
The greenback climbed to a multi-week high of 1.5309 against the
pound, compared to Tuesday's closing value of 1.5344. Next key
resistance for greenback is likely seen around the 1.52 mark.
Looking ahead, U.S. ISM non-manufacturing composite index for
February and Fed's Beige book report are due shortly.
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Sep 2024 to Oct 2024
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Oct 2023 to Oct 2024