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Dollar weak after ISM manufacturing and ADP jobs data

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The U.S. dollar started the second quarter on a sour note, as it weakened following disappointing ISM (Institute for Supply Management) manufacturing data and ADP jobs numbers.

A larger-than-forecast drop in ISM manufacturing index also suggested the U.S. economy is weakening. Manufacturing activity in the U.S. expanded at the slowest pace in 14 months in March. The ISM index of purchasing managers fell to 51.5 last month from a reading of 52.9 in February. Forecasts were for the manufacturing PMI to decline to 52.5 in March.

Meanwhile a separate report showed that private-sector job gains came in weaker- than-expected. Private payroll processor ADP released its jobs numbers on Wednesday showing that businesses added 189,000 jobs in March, which was short of the 225,000 jobs that were expected to be created according to many forecasts by economists.

Focus no turns to the all-important nonfarm payrolls (NFP) report on Friday. 295 247 The forecasts are for around 247,000 new jobs to be added to the U.S. economy in March, following the 295,000 gains in jobs in February.

A stronger-than-expected NFP number will be positive for the dollar.

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