The dollar was edging higher overnight and early morning after a lengthy slump, reaching levels last seen in January 2015 on the US Dollar index. However, ADP Employment Change numbers, released at 8:15 am ET, disappointed and raised concerns about tepid global growth and its impact on the US economy.

The dollar climbed against major currencies early this morning as a result of scrutiny over Fed rate hikes. A Federal Reserve official expressed concern that investors were becoming complacent in the belief that interest rates would hold. Following suit, the Fed Presidents for Atlanta and San Francisco said they would not rule out a June hike and would support it if the economy stayed on track. While these members are non-voting and analysts maintain that the chances of a June hike are low, the dollar benefited from these statements, sending emerging market currencies to a one-month low.

While the dollar appreciated 0.2% against the Japanese yen over the last day, the yen continues to capture attention, strengthening more than twice compared to other major currencies this past week. After the yen reached an 18-month high yesterday, Japan’s Finance Minister said his government is monitoring speculative foreign exchange trades and will respond if needed. The question on many analysts’ tongues: “what can be expected of USD/JPY?”

EURUSD: USD extends its advance against the euro on disappointing European services PMI data.

GBPUSD: Dollar appreciated 0.2% against the pound this morning as a result of scrutiny over US rate hikes and a poor UK PMI Construction report.

AUDUSD: Aussie dollar weaker by 0.16% due to strengthening USD.

USDCAD: Loonie lent support by news that oil is steady around $45.