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US Dollar Slides As ADP Private Sector Job Growth Slows

CANBERA (Alliance News) - The US dollar weakened against its major counterparts in the European ...

Alliance News 6 December, 2018 | 2:41PM
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CANBERA (Alliance News) - The US 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 US 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%.

A separate report from the Labor Department showed first-time claims for US 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 US trade deficit widened more than anticipated in the month of October.

The report said the trade deficit widened to USD55.5 billion in October from a revised USD54.6 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, US 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.

Copyright RTT News/dpa-AFX

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