U.S. Dollar Slides As ADP Private Sector Job Growth Slows
December 06 2018 - 04:40AM
RTTF2
The U.S. dollar weakened against its major counterparts in the
European session on Thursday, following the release of ADP data
showing weaker than expected growth in private sector employment
for November.
Data from payroll processor ADP showed that U.S. private sector
employment climbed by 179,000 jobs in November after jumping by a
downwardly revised 225,000 jobs in October.
Economists had expected an increase of about 195,000 jobs
compared to the addition of 227,000 jobs originally reported for
the previous month.
The ADP report serves as a precursor to the Department of
Labor's nonfarm payrolls for November, which includes both public
and private sector jobs. The economy is expected to have added
199,000 jobs with a jobless rate of 3.7 percent.
A separate report from the Labor Department showed first-time
claims for U.S. unemployment benefits edged down less than expected
in the week ended December 1.
The report said initial jobless claims slipped to 231,000, a
decrease of 4,000 from the previous week's revised level of
235,000. Economists had expected jobless claims to dip to
225,000.
Data from the Commerce Department showed that the U.S. trade
deficit widened more than anticipated in the month of October.
The report said the trade deficit widened to $55.5 billion in
October from a revised $54.6 billion in September.
The currency traded mixed against its major counterparts in the
Asian session. While it fell against the yen and the franc, it rose
against the euro and the pound.
The greenback dropped to 1.2776 against the pound, after rising
to 1.2700 at 3:00 am ET. The greenback is seen finding support
around the 1.32 area.
The greenback eased to 1.3393 against the loonie and 0.6882
against the kiwi, from its early 1-1/2-year high of 1.3445 and a
6-day high of 0.6857, respectively. If the greenback extends fall,
it may find support around 1.32 against the loonie and 1.70 against
the kiwi.
The greenback fell to 2-day lows of 1.1368 against the euro and
0.9946 against the franc, coming off from its early highs of 1.1321
and 0.9990, respectively. On the downside, 1.15 and 0.97 are likely
seen as the next support levels for the greenback against the euro
and the franc, respectively.
The greenback dropped back to 112.61 against the yen and held
steady thereafter. This may be compared to a 2-day low of 112.58
seen at 11:50 pm ET. The greenback is seen finding support around
the 110.00 area.
The greenback held steady against the aussie, after rising to a
new 3-week high of 0.7192 seen at 5:30 am ET. At yesterday's close,
the pair was worth 0.7268.
Looking ahead, U.S. factory orders for October and ISM services
PMI for November as well as Canada Ivey PMI for the same month are
set for release shortly.
At 12:15 pm ET, Federal Reserve Bank of Atlanta President
Raphael Bostic is due to speak about the national economy at the
Georgia Economic Outlook series in Atlanta.
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