WASHINGTON (dpa-AFX) - The U.S. dollar was weak against other major currencies on Wednesday after data showed a substantial slowdown in private sector job growth in the month of July.
Markets were also tracking the progress in U.S. stimulus talks.
Data from payroll processor ADP showed a substantial slowdown in private sector job growth in the month of July.
ADP said private sector employment rose by 167,000 jobs in July after soaring by an upwardly revised 4.314 million jobs in June.
Economists had expected employment to surge up by another 1.5 million jobs compared to the 2.369 million job spike originally reported for the previous month.
Data from the Commerce Department showed that the U.S. trade deficit narrowed in the month of June.
The Commerce Department said the trade deficit narrowed to $50.7 billion in June from a revised $54.8 billion in May.
Data from Commerce Department showed the U.S. trade deficit narrowed in the month of June. The Commerce Department said the trade deficit narrowed to $50.7 billion in June from a revised $54.8 billion in May.
Menawhile, a report from the Institute for Supply Management showed the pace of growth in the service sector unexpectedly accelerated in the month of July.
The dollar index slipped to a low of 92.56, and despite recovering to 92.84 later on in the day, was still down about 0.6% from previous close.
Against the Euro, the dollar weakened to $1.1906 by noon, and subsequently recovered to $1.1864, ans was still trailing Tuesday's close by as much as 0.5%. The euro area private sector expanded at the fastest pace since mid-2018 after four months of contraction, final data from IHS Markit showed today.
The IHS Markit final composite output index rose to 54.9 in July from 48.5 in June as easing of Covid-19 lockdown restrictions boosted demand and expectations. The flash reading was 54.8.
Both the manufacturing and service sectors reported marked rates of growth in July, with manufacturing registering the slightly stronger pace of expansion.
The Pound Sterling firmed up to $1.3162, before paring some gains, drifting down to $1.3551, still up by a fairly strong 0.34%. The U.K. service sector logged its strongest growth in five years in July as the phased reopening of business operations lifted corporate and household spending, final data from IHS Markit showed.
The final IHS Markit/Chartered Institute of Procurement & Supply services Purchasing Managers' Index rose to 56.5 in July from 47.1 in June. The flash score was 56.6.
The Japanese Yen was firmer at 105.59 a dollar, compared with 105.72 Tuesday evening. In economic news from Japan, the services sector in Japan continued to contract in July, albeit at a slower pace, the latest survey from Jibun Bank showed on Wednesday with a PMI score of 45.4.
Against the Aussie, the dollar dropped to 0.7242 before recovering to $0.7191, still notably down from previous close of $0.7160.
The Swiss franc was stronger by over 0.5% at 0.9084 a dollar. The Loonie was firmer at 1.3266 a dollar, thanks to crude oil's sharp upmove.
Statistics Canada's report showed Canada's trade deficit widened to C$ 3.19 billion in June 2020 from an upwardly revised C$ 1.33 billion in May. Imports jumped 21.8% to C$ 42.9 billion, while exports rose 17.1% to C$ 39.71 billion in the month, the data showed.
Copyright RTT News/dpa-AFX
© 2020 AFX News
