Dollar Edges Up as Market Digests Economic Data
A Bloomberg gauge of the dollar edged higher in choppy trading, after readings of US services activity and private hiring painted a mixed view on the economy.
The Bloomberg Dollar Spot Index rose 0.1%, earlier swinging between gains and losses through London and New York trading.
ISM Services gauge came in at 54.4 (52.2 forecast); ADP private-sector payrolls increased by 41,000 (+50k expected).
Read more: US Services Activity Expands at Fastest Pace in Over a Year.
“The ISM services index remains indicative of solid services sector activity but easing price pressures should keep the Fed dovish,” said Elias Haddad, global head of markets strategy at Brown Brothers Harriman.
USD/JPY up less than 0.1% at 156.74.
EUR/USD steady at 1.1682; GBP/USD down 0.3% to 1.3465.
AUD/USD slips 0.2% to 0.6728; earlier, data show Australia’s core inflation slowed in November.
The first hike is about fully priced for May, up from about 80% chance on Monday, based on data compiled by Bloomberg.
“The softer headline data means investors will push back the start to the tightening cycle,” said David Forrester, a senior strategist at Credit Agricole CIB in Singapore.
Source: Bloomberg.com
