The US Dollar (USD) depreciates against its main peers on Wednesday amid hopes that the US and Iran are close to a deal to end the war. The USD Index (DXY), which measures the US Dollar against a basket of currencies, drops more than 0.7% on the day, approaching pre-war levels at 97.50.
A report by Axios, citing two US officials and other sources briefed on the issue, affirmed on Wednesday that the US and Iranian representatives are getting closer to a one-page memorandum of understanding to end the conflict, which defines the framework for more detailed nuclear negotiations at a later time.
This news comes after US President Donald Trump put the Operation Freedom to escort vessels through the Strait of Hormuz in pause, and US Secretary of State Marco Rubio affirmed that the US had achieved all the objectives of the war, signalling the end of the offensive stage.
Apart from that, the USD/JPY pair dropped sharply during Wednesday’s Asian session, allegedly due to an intervention by the Japanese Ministry of Finance (MOF). Although the pair has managed to regain some of the lost ground, this Japanese Yen (JPY) strength has added negative pressure on the DXY.
Later on Wednesday, the US ADP Employment Change Report is expected to show that private employment payrolls increased to 99K in April, from 62K in March. These figures would set a positive precedent that, if confirmed by Friday’s Nonfarm Payrolls report, would buy time for the Federal Reserve to better assess the economic impact of the war.
Economic Indicator
ADP Employment Change
The ADP Employment Change is a gauge of employment in the private sector released by the largest payroll processor in the US, Automatic Data Processing Inc. It measures the change in the number of people privately employed in the US. Generally speaking, a rise in the indicator has positive implications for consumer spending and is stimulative of economic growth. So a high reading is traditionally seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
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Next release:
Wed May 06, 2026 12:15
Frequency:
Monthly
Consensus:
99K
Previous:
62K
Source:
ADP Research Institute
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