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Dollar falls as traders assess US government shutdown, poor jobs data
['Joice Alves']
Zawya.com - All Regional News
LONDON - The dollar fell to near a one-week low on Thursday as traders weighed the impact of a U.S. government shutdown, while poor jobs data boosted expectations the Federal Reserve will cut interest rates two more times this year.
The ADP National Employment Report showed on Wednesday that U.S. private employment shrank by 32,000 jobs last month after a downwardly revised 3,000 decline in August.
"U.S. ADP employment data triggered dollar weakness," said Kit Juckes, Societe Generale's chief currency strategist.
"With many major U.S. data releases withheld due to the government shutdown, alternative measures (yesterday’s ADP, today’s Challenger data) are set to have a longer-lasting impact on markets than usual," said Francesco Pesole, FX strategist at ING.
"Data is vindicating the ECB’s cautious stance, and could keep dovish voices in the governing council quiet," Pesole said.