The US Dollar was the trading day’s biggest loser in the wake of a surprisingly dovish Fed chairman. Expectations of a 2016 rate hike have been devastated and the US Dollar Index lost more than 1%. Earlier this week, the US Dollar Index had been riding at a 2-week peak on investors’ belief that interest rates would continue to climb. Meanwhile, pairs trading saw the greenback generally on the losing side. On the flip side, antipodean currencies, specifically the Aussie and Kiwi Dollars, got a big lift given their close correlation with dollar denominated oil prices.

As reported at 11:16 am (BST in London, the US Dollar Index was trading at 94.942 .DXY, down 0.23%. The EUR/USD was higher at $1.1313, up 0.16%; the pair has ranged from a daily low of $1.1285 and a peak of $1.1335. The AUD/USD was $0.7663, up 0.37% for the Aussie Dollar; the daily trading band ranged from $0.7615 to $0.7699. The NZD/USD was also higher at $0.6924, a gain of 0.87%.

Labor Data Still a Consideration

Currency strategists said that the conflicting messages from Federal Reserve officials has led to extreme market uncertainty. However, for the most part, that uncertainty has now been priced in. The Fed has been known to flip flop on its policy, and because they continue to rely on data to support decisions, that makes this week’s labor data all the more important. Today, the ADP jobs data release could provide a clue as to Friday’s outcome of the all-important NFP figures. Currently, expectations of the ADP call for a decline to 194,000 new private sector jobs. Any disappointment would cement the Fed’s inclinations while a positive surprise could raise uncertainty higher.