Dollar Weakens Ahead of Busy Data Day
The US dollar weakened on Wednesday ahead of a packed day of data releases from the US Treasury and key economic indicators.
Traders are bracing for a flurry of market-moving updates, including ADP's July private payrolls and the Treasury's refunding statement.
The refunding statement, which will be released at 8:30 am ET, lays out how much debt the government plans to sell and in what maturities. This can move long-term interest rates, as investors demand extra compensation for tying up their money for longer periods.
This, in turn, affects foreign-exchange pricing, with many investors comparing returns on US assets with those elsewhere.
Early Wednesday morning, the euro and pound edged higher, while USD/JPY dipped slightly despite Japan's data remaining in expansion territory. Recent services readings in Europe and the UK also improved, giving other currencies a boost ahead of central bank meetings.