The dollar was edging lower ahead of jobs data that could influence expectations on whether the Federal Reserve will cut interest rates again in December.
The ADP releases weekly private sector employment data at 8:15 a.m. Eastern time. Such data have taken on more importance as the recent government shutdown halted official data.
The delayed nonfarm payrolls report is due Thursday. The resumption of data is “likely to lift near-term foreign exchange volatility, particularly as multiple jobs reports ahead of the December Fed meeting could drive meaningful market swings,” Danske Bank’s Jesper Fjarstedt said in a note.
Danske expects the dollar to end the year stronger if the Fed holds rates in December. The DXY dollar index fell 0.1% to 99.482.