The US dollar sank from one-week highs versus the euro and three-week highs versus the Japanese yen as varied US economic data added to uncertainty regarding future interest rate hikes.
A wider than expected trade deficit offset a better than projected US services sector for April. Also, the pace of expansion in the US services sector alleviated from a seven-month peak in April on a decline in new business growth.
May seasonality implied for US dollar advances, but last week’s “non-farm payrolls release will be the ultimate determinant of direction,” said Christopher Vecchio, Currency Analyst at DailyFX.com.
The greenback ended at $1.1195 per euro, while against the Japanese yen, the dollar fell to ¥119.82.
The trade gap bounced to $51.4 billion, the biggest since October 2008.
The material has been provided by InstaForex Company – www.instaforex.com