The greenback rebounded against its major rivals following the stronger-than-expected non-manufacturing ISM index. The index rose from 59.7 to 60.7 in June, beating the estimate of 58. The euro dipped below 1.36 handle versus the dollar, while the yen weakened to reach 123.00 against the dollar.
Earlier, US ADP report showed the economy added 150k jobs in private sector in June, far more than the forecast of 100k and a reading of 97k in the prior month. The weekly jobless claims came out at 318k, slightly higher than the forecast of 313k. The market will focus on the non-farm payrolls for June to be released by the Labor Department tomorrow morning for more clues on the nation’s labor market.
The European Central Bank kept interest rates unchanged at 4.00% as expected. ECB Governor Trichet did not use the word “vigilance” to describe the bank’s attitude towards inflation control, pushing the euro lower modestly. It is already a done deal that the ECB will raise rates at least once on its October policy meeting.
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