first majestic silver

Dollar Pulling Back After Disappointing Employment Report

April 1, 2015

Washington (Apr 1)  The dollar gave back its early gains against all of its major competitors following the release of the weaker than expected private sector employment report Wednesday morning. The US currency has continued to pull back following the release of the disappointing ISM manufacturing data.

Private sector job growth in the US continued to slow in the month of March, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment climbed by 189,000 jobs in March following a slightly upwardly revised increase of 214,000 jobs in February.

Economists had expected an increase of about 230,000 jobs compared to the addition of 212,000 jobs originally reported for the previous month.

Manufacturing activity in the US saw continued growth in the month of March, according to a report released by the  Institute for Supply Management  on Wednesday, although the pace of growth slowed by more than anticipated.

The ISM said its purchasing managers index dropped to 51.5 in March from 52.9 in February. While a reading above 50 indicates continued growth in manufacturing activity, economists had expected the index to show a more modest drop to 52.5.

After reporting a steep drop in US construction spending in the previous month, the  Commerce Department  released a report on Wednesday showing that spending saw some further downside in the month of February

The report said construction spending edged down 0.1% to an annual rate of  USD967.2 billion  in February after tumbling 1.7% to a revised  USD967.9 billion  in January. The modest drop in spending came in line with economist estimates.

The dollar rose to an early high of  USD1.0718  against the Euro Wednesday, but has pulled back to around  USD1.0770  this afternoon.

Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in  Germany  ,  Spain  ,  Italy  and  the Netherlands  , final data from Markit Economics showed Wednesday. The Purchasing Mangers' Index rose to a 10-month high of 52.2 in March from 51 in February. The flash score was 51.9.

German manufacturing growth in March was faster than estimated earlier, marking the strongest improvement in eleven months, survey data from Markit Economics showed Wednesday. The  Markit  /BME Germany Manufacturing Purchasing Managers' Index climbed to 52.8 from 51.1 in February. The flash reading for the index was 52.4, released on  March 24  .

The French manufacturing sector continued to contract in March but at a slower than initially estimated pace, final data from  Markit  revealed Wednesday. The Purchasing Managers' Index came in at 48.8 in March, up from 47.6 in February. The flash score was 48.2.

The buck climbed to a high of  USD1.4739  against the pound sterling Wednesday morning, but has retreated to around  USD1.4825  this afternoon.

British manufacturing sector expanded at the fastest pace in eight months during March as orders and production growth gathered momentum.

The Purchasing Managers' Index rose to 54.4 from 54 in February, which was revised down from 54.1, survey results from Markit Economics and the  Chartered Institute of Procurement & Supply  showed Wednesday. The latest PMI reading was in line with economists' expectations.

 UK  labor productivity declined in the fourth quarter, while labor costs rose moderately, data from the  Office for National Statistics  showed Wednesday. Labor productivity as measured by output per hour dropped 0.2% in the fourth quarter from prior three months, when it grew 0.5%.

The greenback broke out to a high of  Y120.329  against the Japanese Yen early Wednesday, but has since slipped back to around  Y119.660  .

An index measuring business sentiment in  Japan  was unchanged in the first quarter of 2015, the  Bank of Japan  revealed on Wednesday in its quarterly Tankan business survey. The large manufacturers' index came in with a score of 12, missing forecasts for 14, but unchanged from the third quarter.

The outlook score is a little more ominous, suggesting that the index will fall to 10 in the second quarter - shy of forecasts for 16 after showing 9 in the previous three months.

 Japan's  manufacturing sector decelerated in March but continued to expand, the latest survey from Markit Economics showed on Wednesday, with a PMI score of 50.3. That's down from 51.6 in February, although it remains barely above the boom-or-bust line of 50 that separates expansion from contraction.

Source: RTTnews

Gold Eagle twitter                Like Gold Eagle on Facebook