US dollar is struggling a bit today following the weak jobs data just released. Mostly, the dollar is lower against the Japanese yen today, but it is still struggling a bit against other major counterparts.
According to the ADP report for May, the private sector in the United States only added 135,000 jobs. Many had expected that 165,000 jobs would be added to the economy. The weaker than expected news is taking a toll on risk appetite today, but it is also weighing on the dollar a bit.
Ben Bernanke has made comments about using jobs as a gauge as to when to stop quantitative easing in the United States. This latest jobs data indicates that things might not be looking all that rosy for the US economy. As a result, the Federal Reserve may choose to continue stimulus efforts for longer, and that means a weaker dollar.
The news comes ahead other important policy announcements from the ECB and the BOE tomorrow. It is likely to be an interesting couple of days.
At 14:18 GMT the US dollar index is down to 82.6590 from the open at 82.8030. EUR/USD is steady at 1.3081, the opening level. GBP/USD is up to 1.5375 from the open at 1.5312. USD/JPY is down to 99.3605 from the open at 100.0320.
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