The US Dollar Index (DXY) was steady, under pressure after data showed continued weakness in the US labor market and raised expectations that the Fed may continue to cut interest rates.
The ADP report showed that employers have cut jobs, adding to the pressure on the US dollar.
At 9.50 am, the DXY was at 99.609 points, unchanged since it opened in early Asian trading on Wednesday.
The dollar's losses were capped by a report that the NAHB Housing Market Index for November unexpectedly rose to a seven-month high. In addition, Tuesday's stock market drop also boosted demand for the dollar as a liquid asset.
In other data, US initial jobless claims for the week ended October 18 were 232,000. Continuing claims rose by 10,000 to 1.957 million, a two-month high.
ADP reported that US employers shed an average of 2,500 jobs per week in the four weeks ending November 1.
Richmond Fed President Thomas Barkin's comments on Tuesday were slightly dovish and weighed on the dollar. He said that layoff announcements by large companies such as Amazon, Verizon and Target signaled caution about labor market conditions.
Barkin also added that inflation remains relatively high but is unlikely to rise much.
At the same time, the market is now pricing in about a 47% chance that the FOMC will cut the federal funds rate target range by 25 basis points at its December 9–10 meeting.
