US dollar tumbled versus yen and euro after ADP report

US dollar fell to session low versus the Japanese yen on Wednesday and lost positions against the euro, after it became clear that US private sector opened fewer than expected job posts during May.

During European afternoon trade, USD/JPY fell to 99.36, after reaching a session low at 99.13. Subsequently, the pair consolidated at 99.60.

Earlier today, it was reported that non-farm private employment indicator rose by 135 000 during May, below the projected 165 000, but improving in comparison with the revised data from the preceding month, which stated a positive change by 113 000. Investors take this indicator as a premature signal for the non-farm payrolls data, scheduled to be released on Friday. It is expected that information, including private and public sectors, will show US economy managed to create 170 000 job positions in May from 165 000 in April, while the Unemployment Rate remained intact at 7.5%. ADP Employment Change data brought back uncertainty whether FED will embark on a scale back of easing measures.

The yen found support earlier on Wednesday speech by Japanese Prime Minister Shinzo Abe, who proposed strategies to spur economic growth in Japan.

Meanwhile, euro climbed to a session high versus the US dollar at 1.3116. Earlier today the single currency was losing ground against the dollar, after official data showed that Final Services PMI in the Euro zone dropped to 47.2 in May, below projections for a reading of 47.5. German Final Services PMI also slipped below 50.0, to 49.7, slightly lower than the expected 49.8 level, but higher than the reading during April, 49.6.

Additionally, a separate report stated that Retail Sales in the single currency zone fell by 0.5% during April on a monthly basis, missing forecasts for a 0.2% drop. In annual terms, the indicator registered a 1.1% decline in April, but improving in comparison with the revised 2.2% decline during April 2012, compared to April 2011. Retail Sales in the Euro zone declined for third consecutive month in April. Data implied that first necessity goods sales dropped by almost 2% in April, compared to March. Sales, excluding the first necessity goods and energy, however, registered a 0.6% rise in April on annual basis.