Dollar softens after ADP; euro hits one-month high
The dollar fell against a basket of major currencies on Wednesday after a report on the U.S. labor market missed expectations by a wide margin, while the euro climbed to a one-month high on inflation worries.
Concerns about rising COVID-19 cases denting the economic rebound could also serve to keep the central bank from scaling back stimulus.
Other data showed U.S. manufacturing activity increased more than anticipated in August, but a measure of employment in factories fell to a nine-month low, likely due to a shortage of workers.
The dollar index fell 0.203% and hit a new one-month low of 92.376.
· TREASURIES-Yields steady as U.S. payrolls data awaited
The benchmark 10-year yield, which rose as high as 1.334%, was last unchanged at 1.302%.
· The euro rose against the greenback to a one-month high as inflation worries persisted following data on Tuesday which showed euro zone inflation increased to 3% year-on-year in August, the highest in a decade and above the European Central Bank’s 2% target, as well as the 2.7% Reuters forecast.
The euro was up 0.3% to $1.1843, after rising to as much as 1.1857, its highest level since Aug. 5.
· Bundesbank said ECB should prepare for end of PEPP
German Bundesbank President Jens Weidmann said euro zone inflation risks overshooting ECB projections and the central bank should prepare for the end of its 1.85 trillion euro Pandemic Emergency Purchase Program (PEPP).
The ECB is scheduled to hold a policy meeting on Sept. 9.
· Ether rose as high as $3,791.28 on the day, its highest level since May 16.
In cryptocurrencies, ether last rose 8.18% to $3,713.24 while bitcoin last rose 2.9% to $48,521.68
Reference: CNBC, Reuters
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