Forex – Dollar Flat as ADP, Trade Data Come up Short


© Reuters.

Investing.com – The dollar traded flat against its rivals on Wednesday as data showed U.S. private sector job creation slowed and the trade deficit widened amid a third-straight month of declining exports.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.01% to 96.80.

On the labor market front, grew by 183,000 in February, a sharp decline from the upwardly revised 300,000 in January, missing economists’ forecasts of 189,000.

The ADP (NASDAQ:) report is a precursor to the nonfarm payrolls report due Friday. Economists expect the U.S. economy generated 180,000 last month, down from the 304,000 jobs added in January.

The U.S. trade deficit widened to $59.80 billion in December, from $50.30 billion the previous month. Exports fell to $205.10 billion, the third-straight monthly decline.

rose 0.03% to $1.1310 after sharp swings in either direction on reports the European Central Bank is set to downgrade its outlook on euro-area growth when it reveals its interest rate decision on Thursday.

With the central bank widely expected to keep its base rate unchanged at 0%, investor attention is likely to be focused on comments from ECB President Mario Draghi.

The dollar was supported by weakness in the loonie after the Bank of Canada, as expected, stood pat on rates. The bank, however, flagged concerns about economic growth, raising expectations a rate cut could be on the horizon.

rose 0.67% to C$1.3432. A slump in oil prices following a larger-than-expected build in crude inventories also weighed on the loonie.

fell 0.09% to $1.3163 as U.K. Prime Minister Theresa May’s lack of progress on breaking the Brexit impasse weighed on sentiment.

If May fails to persuade EU lawmakers to ease their stance on the Irish backstop issue, many fear the prime minister’s withdrawal deal will be voted down by parliament next week for a second time in as many months.

fell 0.15% to Y111.72 amid an uptick in demand for safe-haven yen following the selloff on Wall Street. The pair, however, remains well above its 200-day moving average of 111.35.

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