US Dollar Steadies After Weakening Over Disappointing Economic Data, Trade Deal Hopes Support
The US dollar is trading steady, supported by a slight optimism in the global markets over a possibility of the phase one trade deal between the US and China getting ready soon. At the time of writing, the US dollar index DXY is trading at around 97.56.
On Wednesday, the US dollar weakened following the release of disappointing economic data. The US ISM Non-Manufacturing PMI index declined to 53.9 in November from 54.7 during October. The reading came in lower than economists’ forecast of 54.5 over a decline in business activity in the services sector, mainly driven by trade tensions.
Additional weakness in the US dollar was driven by the release of the ADP report on Wednesday which revealed a lesser than expected growth in private payrolls in the US. The report revealed that the private sector added only 67,000 jobs during November, against expectations for an increase of 140,000 jobs during this period.
Meanwhile, the US dollar received some support, stemming its slide, after Trump remarked that trade talks with China were progressing well. In addition, a Bloomberg report also hinted that both nations were closing in on the phase one trade deal, helping improve the market sentiment. All eyes now turn to the release of the NFP report on Friday to get an official look at the state of employment in the US.
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