Pound Sterling to US Dollar (USD) Exchange Rate- ‘Greenback’ higher despite mixed data

The US Dollar tumbled to a session low against the Japanese Yen on Wednesday but pushed higher against the Pound after data showed that the US Private sector added less jobs than expected in January, and as a ISM non-manufacturing PMI beat forecasts.

Against the Pound the ‘Greenback’ was trading higher after the publication of a report which showed that activity in the UK’s dominant service sector slowed unexpectedly in January. The service PMI came in at a seven-month low of 58.3 and was below economist expectations for a rise of 59.0. Sterling was weaker after the release.

According to the ADP non-farm payrolls report released Wednesday afternoon showed that US companies added 175,000 new jobs last month, far below the expectations from economists for an increase of 180,000. The decline is being blamed on the extreme cold weather that has affected large tracts of the USA.

“Cold and stormy winter weather continued to weigh on job numbers. Underlying job growth, abstracting from the weather, remains sturdy,” said Mark Zandi, chief economist at Moody’s analytics. Moody’s produces the figures with ADP.

A Markit U.S. services purchasing managers’ index rose to 56.7 last month from 55.7 in December and slightly higher than expectations for a reading of 56.6 offered the ‘Greenback’ support and an ISM non-manufacturing PMI report beat economist forecasts.

The US Dollar dropped against the Japanese Yen after the report increased demand for the safer haven Asian currency as it raises concerns over the US economic recovery.

Against the Euro, the ‘Greenback’ was little moved after the Euro found some support from positive Eurozone private sector data. A separate report however showed that retail sales across the single currency region fell at the fastest pace since May 2011.