Dollar Reverses Gains
The dollar index cut early gains to trade little changed around the 106.3 level on Wednesday, after the ISM Services PMI fell much more than expected, pointing to the slowest growth in the US services sector for three months.
The odds for a 25bps rate cut this month have climbed slightly to nearly 76%, up from 74% earlier in the day and 53% a week ago. Meanwhile, traders looked ahead to Fed Chair Powell’s upcoming remarks for clues on the central bank’s next move.
Investors are also anticipating Friday’s key jobs report, while the ADP data released Wednesday showed the U.S. private sector added 146K jobs in November, a robust figure and only slightly below expectations of 150K. The greenback weakened against the euro and the British pound but appreciated the most against the yen and the Australian dollar.
Source : Trading Economics