US Dollar Falters on Weak Jobs Data, Eyes Key NFP Report
The US Dollar Index (DXY) has slipped modestly lower to around 99.80 on Wednesday, shedding about 0.15% after a batch of disappointing US economic data.
The ADP Employment Change was the most notable disappointment, with private payrolls expanding by just 44K in July, well below the 70K consensus and a sharp deceleration from June's 98K. This figure raises the stakes for Friday's Nonfarm Payrolls report and suggests that hiring momentum is fading more quickly than previously thought.
The ISM Services PMI reinforced this message, with the headline index coming in at 54.1, below the 54.5 forecast but still above June's 54. The Employment Index, however, collapsed to 47.4 from 51.2, dropping into contraction territory and corroborating the weak ADP print.