6 May 2015
USD/JPY drops to daily lows after US ADP miss
FXStreet (Córdoba) - USD/JPY fell to fresh daily lows as the dollar suffered after data showed US private sector added fewer jobs than expected in April, days ahead of the government nonfarm payrolls.
The ADP report showed US private sector added 169,000 jobs in April, coming below the 200,000 expected by analysts and after a downwardly revised 175,000 jobs in March. USD/JPY came under renewed pressure and fell to the 119.50 zone before finding support. At time of writing, USD/JPY is trading at 119.55, recording a 0.2% loss on the day.
Meanwhile, separated data showed US productivity in the first quarter fell by a 1.9% annual pace, while unit labor cost rose by 5.0%.
The dollar has weakened during the last weeks amid disappointing economic reports and fears the US economy is stalling. At last FOMC meeting, the Federal Reserve left the door open to a June rate hike and blamed on “transitory factors” for the slowing growth. However, expectations of a lift-off in June have been fading.
On Friday, the US Labor Department will release the closely-watched nonfarm payrolls report where investors will be looking for signs of a spring rebound. Expectations call for a 213,000 job gain in April following dismal 126,000 in March.
The ADP report showed US private sector added 169,000 jobs in April, coming below the 200,000 expected by analysts and after a downwardly revised 175,000 jobs in March. USD/JPY came under renewed pressure and fell to the 119.50 zone before finding support. At time of writing, USD/JPY is trading at 119.55, recording a 0.2% loss on the day.
Meanwhile, separated data showed US productivity in the first quarter fell by a 1.9% annual pace, while unit labor cost rose by 5.0%.
The dollar has weakened during the last weeks amid disappointing economic reports and fears the US economy is stalling. At last FOMC meeting, the Federal Reserve left the door open to a June rate hike and blamed on “transitory factors” for the slowing growth. However, expectations of a lift-off in June have been fading.
On Friday, the US Labor Department will release the closely-watched nonfarm payrolls report where investors will be looking for signs of a spring rebound. Expectations call for a 213,000 job gain in April following dismal 126,000 in March.