The dollar index (DXY00) Wednesday rose by +0.24%. Wednesday’s stock slump boosted liquidity demand for the dollar. Also, Wednesday’s news that showed the Q1 core PCE price index rose more than expected is hawkish for Fed policy and dollar supportive. The dollar fell back from its best levels on signs of weakness in the US labor market after the Apr ADP employment change rose less than expected. The dollar was also pressured after the US economy contracted more than expected in Q1.
The US Apr ADP employment change rose +62,000, weaker than expectations of +115,000 and the smallest increase in 9 months.
