US Dollar Weakens on Fed, ADP Report

US dollar is weakening today, heading lower on the latest expectations for the US economy. The latest ADP report, along with expectations that the Fed will continue its asset purchase program, are contributing to dollar weakness.

Worries about a soft patch for the US economy are weighing on the dollar today. The latest ADP report, highlighting jobs in the private sector, came in below expectations for April, with the economy only adding 119,000 jobs. On top of that, there are expectations that the Federal Reserve will end its two-day meeting without changing its asset purchase program.
The continuation of quantitative easing is likely to keep the US dollar weak for now. Dollar is down against most of its major counterparts, including the euro. Dollar index is heading lower today, losing 0.24 per cent on the day as of this writing.
With Federal Reserve officials recently making comments about relying more on employment figures to help them decide when to change course, the latest news isn’t much help to the dollar. With employment faltering, the Fed is likely to leave current programs in place, emphasizing dollar weakness.
At 17:12 GMT EUR/USD is up to 1.3195 from the open at 1.3168. GBP/USD is up to 1.55832 from the open at 1.5532. USD/JPY is down to 97.2300 from the open at 97.4400.

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