US dollar has been struggling since the latest ADP data, and Forex traders and others are waiting for the nonfarms payroll report due out at the end of the week. However, even though the latest economic data isn’t positive for the greenback, losses are being limited as risk aversion sets in.
There is some risk aversion in the markets today as US stocks struggle following the latest ADP data, which shows that the private sector added fewer jobs than expected in April. This latest news likely means that another Fed rate hike is being pushed further down the road.
At first, the US dollar reacted poorly, and the greenback struggled yesterday. Now, though, risk aversion is limiting dollar losses. US dollar is trading higher against its major counterparts, and the dollar index is higher today.
Some dollar weakness is likely for some time, and there are analysts who expect to see the dollar struggle for some time. For today, though, greenback has the upper hand.
At 14:07 GMT the US dollar index is up to 93.046 from the open at 93.010. EUR/USD has slipped, dropping to 1.1478 from the open at 1.1497. GBP/USD is down to 1.4485 from the open at 1.4535. USD/JPY is up to 106.9640 from the open at 106.5970.
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