US Dollar Heads Lower on ADP Report

The latest private payroll report, for March, is in, and it shows the slowest job growth in five months. As a result, the US dollar is heading a little bit lower, thanks to the concerns about economic growth.

ADP released its private employment report earlier, and the report showed that only 158,000 private sector jobs were added in March, rather than the forecast of 200,000. After months of showing some progress, this latest slowdown in the growth of the labor market, is holding back the US dollar.
Later this week, the Bureau of Labor Statistics will release the nonfarm payrolls report. Since the recession, the two measures have shown some divergence. However, the numbers are starting to align a little more in recent months, and that means that many expect nonfarm payrolls to also show slower than expected growth.
For now, the economic news is slowing the US dollar, sending it down against many of its counterparts today. Greenback may not remain lower long-term, though, depending on what happens with other regions. Yen could weaken after the BOJ meeting, and eurozone is still struggling.
At 14:58 GMT EUR/USD is 1.2846 is up to 1.2819. GBP/USD is up to 1.5140 from the open at 1.5104. USD/JPY is down to 92.9070 from the open at 93.4390.

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