Forex News: U.S. Dollar Falls Amid Weak Data, Trade Tensions

U.S. Dollar Falls Amid Weak Data, Trade Tensions

(RTTNews) - The U.S. dollar slipped against its major counterparts in the New York session on Wednesday, following the release of weaker than expected economic data, as well as rising trade tensions.

Data from payroll processor ADP showed that private sector employment rose by 37,000 jobs in May after climbing by a downwardly revised 60,000 jobs in April.

Economists had expected private sector employment to jump by 115,000 jobs compared to the addition of 62,000 jobs originally reported for the previous month.

A separate report released by the Institute for Supply Management showed service sector activity in the U.S. unexpectedly saw a slight contraction in the month of May.

The ISM said its services PMI fell to 49.9 in May from 51.6 in April, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 52.0.

U.S. President Donald Trump signed executive order doubling tariffs on imported steel and aluminum to 50 percent, citing national security risks and unfair pricing.

Ahead of a fast-approaching deadline, the Office of the U.S. Trade Representative has reportedly sent letters to trading partners to remind them of an upcoming deadline in tariff negotiations.

The greenback weakened to 1.1434 against the euro, 0.8170 against the franc and 142.60 against the yen, from an early 2-day high of 1.1356, 6-day high of 0.8250 and a 5-day high of 144.38, respectively. The next possible support for the currency is seen around 1.16 against the euro, 0.80 against the franc and 140.00 against the yen.

The greenback declined to a 9-day low of 0.6504 against the aussie and near an 8-month low of 1.3652 against the loonie. The currency may find support around 0.68 against the aussie and 1.34 against the loonie.

The greenback dropped to an 8-day low of 1.3579 against the pound. If the currency falls further, it is likely to test support around the 1.37 region.

The greenback edged down to 0.6039 against the kiwi. The currency is poised to find support around the 0.62 level.

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