Forex – Dollar Retreats From 2018 Highs as US Services Activity Falls Short

© Reuters. – The dollar retreated from its highest levels of the year against a basket of major currencies as subdued economic data weighed on sentiment ahead of Friday’s nonfarm payrolls report.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.16% to 92.43.

The U.S. Department of Labor reported Thursday that rose by 2,000 to a seasonally adjusted 211,000 for the week ended April 27, beating economists’ forecast for a rise to 225,000.

data for April slowed to 56.8, missing expectations for a reading of 58.1.

The services sector is critical component of the US economy, accounting for roughly 80% of U.S. private-sector gross domestic product (GDP).

The Commerce Department said on Wednesday final rose 2.6% last month, in-line with the previous reading.

The economic reports come a day ahead of a nonfarm payrolls, expected to show the U.S. economy created jobs in April. Wage growth, or average hourly earnings, is expected to garner the bulk of the attention amid expectations that a tighter labour market would support faster inflation.

The Federal on Wednesday left interest rates unchanged, expressing confidence in the labor market, anticipating conditions to remain “strong.”

rose 0.02% to $1.3573 amid ongoing negative sentiment after UK services PMI data fell short of expectations.

rose 0.30% despite data showing inflation undershot economists’ estimates in April.

fell 0.59% to Y109.19, while fell 0.26% to C$1.2850.

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