The greenback continued its corrective rally on Wednesday with mixed US economic data. The euro weakened to as low as 1.3562 versus the dollar, and the sterling fell from 2 to 1.9873.
Durable goods orders rose 3.7% in March, beating the estimate of 3.3%. Factory orders increased 3.1% in March, above the forecast of 2.1% and a 1.0% rise in the previous month. Combined with the stronger-than-expected manufacturing ISM index, those two manufacturing numbers helped the dollar extend the correction in thinned holiday trading conditions.
The dollar rebound was resulted from adjustments in short dollar positions rather than a change in overall negative sentiment over the dollar. The dollar is likely to maintain tight range correction before the Labor Department employment report due Friday. US ADP job report today showed that private sectors added 64k jobs in April, far below the forecast of 100k. Though ADP report has no correlation with the Labor Department report, the market will keep cautious ahead of Friday payrolls.
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