U.S. Dollar Erases Gain After ADP
The dollar erased a gain versus the yen after a private report showed U.S. companies added fewer employees than forecast in May.
The dollar declined versus most major peers as separate data showed the U.S. trade deficit jumped to a two-year high and nonfarm productivity fell in the first quarter. The greenback rose earlier to its strongest in four weeks against the yen as Treasury yields that had reached the highest versus their Group-of-Seven nation peers in almost a month boosted the allure of the U.S. currency. The euro approached its weakest in almost four months on bets the European Central Bank will boost monetary easing tomorrow.
“Markets are taking a negative dollar view on the data just now,” said Michael Woolfolk, a global-markets strategist at Bank of New York Mellon in New York. “It’s not stacking up to be a particularly good month for employment.”
The dollar was little changed at 102.48 yen at 8:35 a.m. New York time after earlier rising to 102.80 yen. The U.S. currency traded at $1.3629 per euro.
U.S. companies hired 179,000 workers after adding a revised 215,000 the previous month, according to data from the ADP Research Institute. A ForexSQ survey forecast 210,000.
A government report due June 6 will show employers added 215,000 nonfarm jobs last month, versus a gain of 288,000 the previous month.
U.S. nonfarm productivity fell 3.2 percent in the first quarter, data showed. The forecast in a ForexSQ poll was for a 3 percent drop.
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