Stronger-than-expected US private payrolls and services PMI data lift USD demand, pushing EUR/USD to 1.1607.
EUR/USD extended its decline to 1.1607 on Wednesday, pressured by robust US economic data that bolstered expectations for a hawkish Federal Reserve. The US Dollar Index (DXY) rose 0.25% to 99.45, nearing its recent highs.
ADP private payrolls surged to 122K in May, surpassing the 117K forecast and marking the highest reading since January 2025. The ISM Services PMI climbed to 54.5, exceeding expectations, while the S&P Global Services PMI dipped slightly to 50.7.
Markets now price a 40% chance of a 25 bps Fed rate hike in December, as stronger data and Middle East tensions support the USD. New York Fed President John Williams indicated no immediate need for policy changes.