Dollar Tumbles Amid Mixed US Data, Eurozone Growth Beats Expectations

The US dollar continued its decline on Wednesday, falling by around 0.2% to near 99.7 as data showed a mixed picture of economic growth and inflation.

The ADP employment report rose by only 44k, below the expected 65k, while the ISM services index held steady at 54.1 but saw its employment gauge drop into contraction at 47.4 despite prices paid climbing to 70.3.

FOMC hawks have pushed back against the soft jobs signal, with Governor Cook warning that she is prepared to act on a hike absent renewed disinflation, but September hike odds continue to retreat, weighing on the dollar.

The eurozone's composite PMI was revised up to 52.0 in July, corroborating last week's upside Q2 growth surprise, while producer prices fell due to cheaper energy. This adds to the constructive tone, with German factory orders up 3.1% in June and eurozone retail sales expected at 10:00 BST.