Greenback lower vs euro and yen after downbeat economic reports

Greenback lower vs euro and yen after downbeat economic reports

2 April 2015, 09:55
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On Thursday the greenback declined against the euro and the yen, after downbeat US reports on private sector jobs annd factory activity. Investors now eye nonfarm payrolls report due on Friday.

EUR/USD was up 0.45% to 1.0810, off Wednesday’s lows of 1.0717.

The dollar slid lower on downbeat economic data.

On Wednesday a report indicated that U.S. manufacturing activity slowed last month while the U.S. private sector added fewer-than-expected jobs dampened expectations for higher interest rates. The Institute for Supply Management said its index of purchasing managers fell to a 14-month low of 51.5 in March from February’s 52.9.

Moreover, the latest ADP nonfarm payrolls report showed that the U.S. private sector added 189,000 jobs last month, below economists' expectations for jobs growth of 225,000 and the lowest since January 2014.

Another report indicated that U.S. construction spending fell unexpectedly in February while the previous month’s figure was revised to show a sharper drop than previously expected.

The soft data fuelled concerns that the Federal Reserve could push back an expected interest rate hike to September from midyear.

The euro’s gains were held in check as an impasse over the Greek government’s reform plans continued.

Later this month, Greece will run out of cash if it does not reach a compromise with its creditors on a program of economic reforms in time to unlock more bailout funds.

In the meantime, USD/JPY dipped 0.13% to 119.57, down from the previous session’s highs of 120.32.

Investors are awaiting Friday's government nonfarm payrolls report for March for further clarity on the path of monetary policy.

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