The dollar is turning in a mixed performance against its major rivals Wednesday afternoon. Following a two-day meeting of the Federal Open Market Committee, the Federal Reserve on Wednesday announced its widely expected decision to leave interest rates unchanged.
In view of realized and expected labor market conditions and inflation, the Fed said it decided to maintain the target range for the federal funds rate at 1.75 to 2 percent.
With the release of the Labor Department’s more closely watched monthly jobs report looming on Friday, payroll processor ADP released a report on Wednesday showing private sector employment in the U.S. increased by much more than expected in the month of July.
ADP said private sector employment jumped by 219,000 jobs in July after climbing by an upwardly revised 181,000 jobs in June.
Economists had expected an increase of about 185,000 jobs compared to the addition of 177,000 jobs originally reported for the previous month.
Partly reflecting slowdowns in new orders and production growth, the Institute for Supply Management released a report on Wednesday showing growth in U.S. manufacturing activity slowed by more than anticipated in the month of July.
The ISM said its purchasing managers index fell to 58.1 in July after unexpectedly climbing to 60.2 in June. While a reading above 50 still indicates growth in the manufacturing sector, economists had expected the index to show a more modest drop to 59.5.
Construction spending in the U.S. showed a significant decrease in the month of June, according to a report released by the Commerce Department on Wednesday. The Commerce Department said construction spending slumped by 1.1 percent to an annual rate of $1.317 trillion in June from a revised rate of $1.332 trillion in May.
While economists had expected construction spending to rise by 0.3 percent, the revised data for May showed a 1.3 percent jump in spending compared to the previously reported 0.4 percent increase.
The dollar slid to a low of $1.1699 against the Euro Wednesday, but has since climbed to around $1.1670.
Eurozone manufacturing activity remained subdued at the start of the third quarter, as initially estimated, final data from IHS Markit showed Wednesday. The factory Purchasing Managers’ Index rose to 55.1 in July, in line with flash estimate, from 54.9 in June.
The buck fell to a low of $1.3144 against the pound sterling Wednesday, but has since risen to around $1.3125.
The UK manufacturing sector expanded at the slowest pace in three months in July, survey data from IHS Markit and Chartered Institute of Procurement & Supply showed Wednesday. The manufacturing Purchasing Managers’ Index dropped to 54.0 in July from 54.3 in June. However, any reading above 50 indicates growth in the sector.
UK house prices increased at a faster pace in July, data from Nationwide Building Society showed Wednesday. House prices advanced 2.5 percent year-on-year in July, faster than the 2 percent rise in June. House price growth was forecast to ease to 1.8 percent.
The greenback reached an early high of Y112.150 against the Japanese Yen Wednesday, but has since retreated to around Y111.450.
The manufacturing sector in Japan continued to expand in July, albeit at a slower pace, the latest survey from Nikkei revealed on Wednesday with a PMI score of 52.3. That’s down from 53.0 in June, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.