USD clawed back some of the losses from Monday after US job openings rose to a six-month high, and ISM services came in stronger than expected thus pointing to solid expansion in the economy.
The prices paid element of the ISM services number came in remarkably high, indicating the threat of inflation rearing its head again. As a result, markets have now rescheduled the first Federal Reserve (Fed) rate cut of the year to July.
Earlier in the day, EU CPI numbers came in-line with expectations, rising to 2.4%.
*Daily move - against G10 rates at 7:30am, 08.01.25
** Indicative rates - interbank rates at 7:30am, 08.01.25
We've got another round of EU inflation numbers in the form of PPI and job numbers from the US with the release of the weekly jobless claims and the ADP payroll numbers.
USD gains are continuing from yesterday and similar data points will likely see this continue.
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