Forex: The Dollar declined after a series of disappointing data

© Reuters. – The u.s. dollar fell on Wednesday after applications for unemployment disappointing, and orders to factories have indicated economic growth.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.1% to $ 96.222 to 16: 30.

The data from ADP (NASDAQ: ADP) on the employment shows that the private sector created only 102 000 jobs in June, compared to 140 000 planned.

The figures, which are considered as a precursor to the employment report, much more detailed of Friday, confirming the argument in favour of a rate cut from the Fed.

Other figures have also been favourable to the easing of the monetary policy of the central bank, with a drop in factory orders for may and a decline in the ISM non-manufacturing index to 55.1 in June.

At its last policy meeting, the Fed has opened the door to a rate cut this year, and a rate reduction of 25 basis points in July is expected.

The dollar was lower than the japanese yen, the USD/JPY dropping 0.2% to 107,69 as demand for the safe-haven increased. The euro has progressed with EUR/USD rising 0.1% to 1,1297, while GBP/USD fell by 0.1% to 1,2576 and USD/CAD has lost 0.2% to 1,3070 .

The trade should be limited given that markets in US close early and will remain closed Thursday for the Independence Day in the United States.

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