U.S. Dollar Slides Against Majors
02 April 2015 - 6:12PM
RTTF2
The U.S. dollar weakened against the other major currencies in
the late Asian session on Thursday, as weaker U.S. jobs and
manufacturing data released overnight raised expectations that the
Federal Reserve may hold off raising U.S. interest rates until
later in the year.
Private sector job growth in the U.S. continued to slow in the
month of March, according to a report released by payroll processor
ADP on Wednesday. ADP said private sector employment climbed by
189,000 jobs in March following a slightly upwardly revised
increase of 214,000 jobs in February.
Economists had expected an increase of about 230,000 jobs
compared to the addition of 212,000 jobs originally reported for
the previous month.
Manufacturing activity in the U.S. saw continued growth in
March, although the pace of growth slowed more than anticipated,
the Institute for Supply Management said Wednesday. As well, a U.S.
construction spending saw some further downside in February, after
reporting a steep drop in spending in the previous month.
Traders will be watching for the U.S. jobs report for March due
Friday, which is closely watched by the Fed. While, the equity
markets will be closed for the Good Friday holiday.
Wednesday, the U.S. dollar fell 0.57 percent against the Swiss
franc and 0.31 percent against the yen.
In the late Asian trading today, the U.S. dollar fell to a 3-day
low of 0.9639 against the Swiss franc and a 2-day high of 1.0824
against the euro, from yesterday's closing values of 0.9663 and
1.0761, respectively. If the greenback extends its downtrend, it is
likely to find support around 1.10 against the euro and 0.93
against the franc.
Pulling away from an early more than a 3-week high of 0.7567
against the Australian dollar, the greenback edged down to 0.7599.
On the downside, 0.78 is seen as the next support level for the
greenback.
The greenback dropped to 1.4841 against the pound and 119.50
against the yen, from yesterday's closing quotes of 1.4822 and
119.73, respectively. The greenback may test support near 1.51
against the pound and 117.06 against the yen.
Against the New Zealand and the Canadian dollars, the greenback
edged down to 0.7479 and 1.2590 from yesterday's closing quotes of
0.7447 and 1.2619, respectively. The greenback is likely to find
support around 1.20 against the loonie and 0.77 against the
kiwi.
Looking ahead, U.K. Markit/CIPS construction PMI for March is
due to be released in the European session.
In the New York session, Canada merchandise trade data for
February, U.S. weekly jobless claims for the week ended March 28
and U.S. trade balance and factory orders - both for February are
slated for release.
At 3:45 pm ET, U.S. Federal Reserve Governor Lael Brainard is
expected to speak at the Ninth Biennial Federal Reserve System
Community Development Research Conference in Washington DC.
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