USD steady after lower than expected jobs data
Daily Currency Update
Demand for the US dollar held steady on Wednesday after data showed that hiring slowed in August compared to July.According to the ADP National Employment Report, private sector employment increased by 132,000 in August – short of the 300,000 expected by economists and down from the 270,000 gain the month prior. Employment numbers for August in the US are typically volatile due to the summer slowdown. Annual pay was up 7.6% according to the report.
On Friday, we’ll see the government-released employment data which is projected to show a 300,000 payrolls increase in August. If Friday’s jobs report indicates a labor market that has added jobs at a moderately healthy pace, this could give the US Federal Reserve more reason to keep to a 75-basis-point rate hike in September – which could continue to benefit USD.
The US Dollar Index was trading at 108.84 at the time of writing.
Key Movers
The euro retraced slightly against the US dollar on Wednesday, after outperforming major counterparts through trade yesterday. A further depreciation in gas prices and hawkish ECB outlook helped support the embattled currency and foster a break back above parity. EURUSD was at 1.00085 at the time of writing.GBPUSD remained under pressure amid the rising risk of recession in the UK. The pair tumbled below 1.17 yesterday. With inflation projected to hit 18% before January, the pound will likely face sustained headwinds as we move toward and through Q4. GBPUSD was trading at 1.1611 at the time of writing.
Expected Ranges
- EUR/USD: 0.9977 - 1.0044 ▼
- GBP/USD: 1.1604 - 1.1714 ▼
- AUD/USD: 0.6844 - 0.6914 ▲
- USD/CAD: 1.3022 - 1.313 ▲