The US Dollar as weakened against the majority of its most traded peers and fallen further below the 10 Yen mark as weaker than expected jobs data supported speculation that the Federal Reserve will refrain from cutting its monetary stimulus programme.
Also weighing on the ‘Greenback’ was the release of data that showed that orders placed with US factories rose less than forecast in April as demand for goods fell. According to the US Commerce Department the number of factory orders rose less that expected by just 1%. Economists had been predicting an improvement of 1.5%. The weaker than expected rise combined with a lower than hoped for rise in employment added to speculation that the USA’s recovery may not be as strong as had been hoped.
According to the ADP Research Institute, employment in the US increased by 135,000 workers in May less than the expected rise of 165,000. The disappointing figures are likely to show that Friday’s closely watched non-farm payrolls data will also show a weakening in the US jobs market.
“We continue to see expansion of the workforce … but growth has slowed since the beginning of the year,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, in New York.
This week has seen most of the data releases for the states show signs of a slowdown in the world’s largest economy as federal budget cuts start to bite and the continuously disappointing performance of the Eurozone economy.
The next major data release for the USA will be Thursday’s initial jobless claims data and Friday’s Non-farm payrolls data for May. Any sins of further weakening in those are sure to send the Dollar downwards against the Yen and other safe haven currencies.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6514
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7652
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0471
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.6039
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0342
(Correct as of 15:40 pm GMT)
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