Dollar Mixed Following ADP Private Payrolls Data
January 08 2020 - 4:32AM
RTTF2
The U.S. dollar showed mixed trading against its major
counterparts in the European session on Wednesday, after a data
showed that U.S. private sector employment jumped more than
anticipated in December.
Data from payroll processor ADP showed that U.S. private sector
employment rose by 202,000 jobs in December after climbing by a
substantially upwardly revised 124,000 jobs in November.
Economists had expected employment to increase by about 160,000
jobs compared to the addition of 67,000 jobs originally reported
for the previous month.
The key economic data over the week includes U.S. jobless claims
on Thursday and the US non-farm payrolls report on Friday.
Economists expect U.S. employment to increase by 168,00 jobs in
December after an increase of 266,000 jobs in November. The jobless
rate is expected to hold at 3.5 percent.
The currency strengthened against its most major counterparts
earlier in the European session, as Iranian strike against US bases
in Iraq forced investors to seek safe-haven assets.
The dollar declined in the Asian session amid falling U.S.
treasury bond yields.
The greenback pared gains to 0.9701 against the franc, from a
high of 0.9729 hit at 5:45 am ET. The greenback-franc pair has set
an 8-day low of 0.9665 in the Asian session. The greenback is seen
finding support around the 0.95 mark.
Extending early rally, the greenback climbed to a 6-day high of
108.82 against the yen. This followed a 3-month low of 107.65
recorded in the previous session. Next key resistance for the
greenback is likely seen around the 110.00 level.
Data from the Cabinet Office showed that Japan's consumer
confidence rose to its highest level in seven months in
December.
The consumer confidence index rose to a seasonally adjusted 39.1
in December from 38.7 in November. Economists had expected a score
of 39.5.
The greenback appreciated to near a 2-week high of 1.1111
against the euro. The pair had closed Tuesday's deals at 1.1152.
The greenback is likely to face resistance around the 1.10 region,
if it gains again.
Data from Destatis showed that Germany's factory orders
decreased unexpectedly in November.
New orders in manufacturing fell 1.3 percent, confounding
expectations for an increase of 0.2 percent. Orders had increased
by a revised 0.2 percent in October.
The greenback held steady against the pound, after rising to a
2-day high of 1.3080 at 7:45 am ET. The pound-greenback pair had
finished yesterday's trading session at 1.3119.
Data from the Lloyds Bank subsidiary Halifax and IHS Markit
showed that UK house prices logged its fastest growth this year in
December.
House prices increased 1.7 percent on a monthly basis, faster
than the 1.2 percent increase in November. This was the fastest
gain seen this year and exceeded the expected rate of 0.6
percent.
The U.S. consumer credit for November is due out later in the
New York session.
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