THE released of mixed US data during the week left the US dollar on a depreciating bias, with the US dollar index declined 1.1% to trade below 95. The ADP National Employment Report showed US private employers added 169,000 jobs in April, the fewest since January 2014 and far below economists’ forecasts of 200,000.
The ADP numbers suggested the non-farm payroll will fall short of 230,000 forecasted despite the recent positive claims data and ISM surveys. This together with the weaker-than-expected non-farm productivity and the widening US trade deficit sent the US dollar index lower against other major currencies. In response to the sell-off of US dollar, the euro touched its two-month high of 1.137 against the greenback along with other positive economy data and the hike in German bund yields.
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