Dollar Falls to Day’s Low After Soft ADP, ISM Data
A Bloomberg gauge of the dollar fell to the day’s low after separate readings of private-sector job growth and services activity lagged estimates, pulling Treasury yields down across the curve. Canada’s loonie extended gains after Bank of Canada officials held interest rates steady.
The Bloomberg Dollar Spot Index fell 0.4% to 1208.60; it gauge breaks below 1197.88, would be weakest since 2022.
USD/CAD trades to day’s low at 1.3676 after the Bank of Canada held policy rate unchanged at 2.75%, matching market pricing and economist expectations.
EUR/USD rises as much as 0.5% to 1.1430 day’s high as European Central Bank decision looms Thursday.
USD/JPY down 0.5% to 143.26.
One-month risk reversals on pair trade to 150bp in favor of puts over calls, the least bearish on dollar-yen since March.
GBP/USD rallies 0.3% to 1.3556.
Prime Minister Keir Starmer said Wednesday that the UK is hoping to complete a trade deal with the US in next two weeks to avoid the US admin’s new tariffs on steel.
Source: Bloomberg
