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Dollar edges higher against yen, slips versus euro ahead of Fed

The ADP report showed private payrolls rising 15,000, below expectations, lowering rate hike odds to about 31% from nearly 40% a week earlier.

Reported · Written up by our desk · Major Pairs

Forexlive reports the U.S. dollar closed mixed in relatively quiet trading ahead of the Federal Reserve policy decision scheduled for 2:00 PM ET the next day, with traders watching for guidance from Chair Kevin Warsh.

The greenback posted gains versus the Japanese yen, British pound, Swiss franc, and Australian dollar, while slipping modestly against the euro, Canadian dollar, and New Zealand dollar.

Market pricing shifted after economic data came in softer than expected, including an ADP National Employment Report showing private payrolls up 15,000 versus 16,500 expected, plus weaker wholesale inventories and a disappointing Conference Board Consumer Confidence Index.

Forexlive also noted the elevated U.S. trade deficit alongside lower inflation expectations, which helped push Treasury yields down and reduced expectations for further tightening, with odds of another rate hike falling to roughly 31% from nearly 40% a week earlier. The outlet added that easing Middle East tensions were seen as a factor weighing on crude prices.

Latest closeWTI crude $81.23 ▼1.7%

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