The dollar index (DXY00) today is down by -0.43%. The dollar today gave up an overnight advance and turned lower after the US May ADP employment change rose less than expected and posted its smallest increase in more than two years, a sign of labor market weakness and a dovish factor for Fed policy. Also, falling T-note yields today have weakened the dollar’s interest rate differentials. Losses in the dollar accelerated today after the US May ISM services index unexpectedly contracted for the first time in 11 months.
The US May ADP employment change rose by +37,000, weaker than expectations of +114,000 and the smallest increase in more than two years.
