The dollar rose to a one-month high versus the euro after a private report showed U.S.
companies unexpectedly added jobs. The U.S. dollar strengthened versus the euro
as ADP Employer Services reported that companies added 9,000 jobs in July after
cutting a revised 77,000 positions in the previous month. The median forecast
of 29 economists was for a reduction of 60,000 jobs.
The Labor Department will probably
report on Aug. 1 that non-farm payrolls
dropped by 75,000 this month following a decline of 62,000 in June, according
to the median forecast. The U.S.
payroll report, which includes government hiring, has shown a reduction in jobs
each month this year, while ADP has recorded only two declines.
The dollar pared its gain versus the euro after an Energy Department report showing an unexpected
decline in gasoline inventories pushed oil prices higher.
Crude oil rose to $122.50 a barrel
on the New York Mercantile Exchange.
The Federal Reserve extended its
emergency lending programs to Wall Street firms through January after policy
makers judged that markets are still too weak to operate without a backstop
from the central bank.
EUR/USD fell to $1.5559, where losses were
capped by bids ahead of $1.5550. Rate managed to recover to $1.5614 but then
back off to $1.5580 and $1.5520. At the end of NY trading bids helped the euro
to rebound to $1.5600.
GBP/USD declined to $1.9770 before rebounding
to $1.9800 and later fell to session lows on $1.9840. Further pound recovered to
$1.9780 and closed the day above $1.9800.
USD/JPY printed lows below Y108.00 – at Y107.70.
Bids helped the dollar to lift up to Y108.20/30, where offers capped the rise. Later
rate set stable between the Y108.00/20 zone.
At 09:00 GMTItaly
and Eurozone will release their inflation reports.
Main focus for today will be on US data, including the
preliminary reading of 2Q GDP with a forecast of rising by 2.2% y/y after 1.0% y/y
quarter before. Also PCE price index (Q2) and Chicago PMI (July) are due to
come.