The Dollar Index, a widely watched measure of the US Dollar against a basket of major currencies, made a modest advance to 102.40 from its previous position at 102.20.
In the realm of US economic indicators, private businesses in the United States, represented by the ADP employment report, exceeded expectations by hiring 164,000 workers, surpassing economists’ forecasts of 120,000. Concurrently, the US Claims for Unemployment Benefits showed improvement, decreasing to 202,000 from the previous 220,000.
Against the Japanese Yen (USD/JPY), the US Dollar demonstrated strength by surging to 144.60, marking a 1.12% increase from the previous level of 141.95. This ascent positioned the Greenback at its highest point against the Yen in nearly two weeks.
Conversely, the Australian Dollar (AUD/USD) faced a decline, dropping to 0.6700 from 0.6762. This decrease followed a dip in Australia’s Judo Bank Manufacturing PMI to 47.6 from the previous 47.7, indicating three consecutive quarters of contraction in services activity.
The Euro (EUR/USD) bucked the trend by edging higher, closing at 1.0945 compared to 1.0925. The Eurozone Final Services PMI, which rose to 48.8 from the previous 48.1, outperformed expectations at 48.1, contributing to the gains in Euro cross pairs.
Sterling (GBP/USD) experienced a modest advance to 1.2677 from 1.2660 after UK Services PMIs surpassed estimates, climbing to 53.4 against the anticipated 52.7. The GBP/USD pair stabilized after facing downward pressure throughout the week.
The US Dollar showed mixed performance against Asian and Emerging Market currencies. The USD/SGD pair closed at 1.3295, up from 1.3270, while USD/CNH rallied to 7.1780 from 7.1560. Against the Thai Baht, the Dollar (USD/THB) edged higher to 34.53 from 34.30.
In the bond market, the US 10-year bond yield surged to 3.99% from 3.94%, with the 2-year US treasury rate rising to 4.38% from 4.33%. Germany’s 10-year Bund yield increased by 9 basis points to 3.72%.
Equity markets demonstrated stability, with the DOW at 37,580 (compared to 37,630) and the S&P 500 dipping to 4,707 from 4,727. Japan’s Nikkei 225 Index climbed to 33,380 from 33,220.
Additional data releases included China’s Caixin Services PMI, which rose to 52.9 from 51.5, surpassing median forecasts at 51.6, and UK Net Lending to Individuals, which increased to GBP 2 billion from GBP 1.3 billion.
In the realm of Forex trading, USD/JPY experienced volatility, concluding at 144.60 from 141.95 on Wednesday. The Euro (EUR/USD) outperformed, climbing to 1.0945 from 1.0925, buoyed by a robust Eurozone Services PMI. The Aussie Dollar (AUD/USD) faced a decline, sliding to 0.6700 from 0.6762, influenced by a fall in Judo Bank’s Manufacturing PMI. Sterling (GBP/USD) advanced modestly to 1.2677 from 1.2660, finding stability after a volatile week.
