USD Trading Outlook
The US dollar (USD) appeared strong versus a basket of currencies ahead of the Non-Farm Payrolls (NFP) release later today at 12:30 GMT. Following a disappointing ADP employment report – a good forecaster of the NFP - on Wednesday, market participants are growing more bearish towards the US labor market. Against the Canadian dollar (CAD), the greenback climbed to 0.9880 from 0.9866. Versus the Japanese yen (JPY), the US dollar slightly rose to 80.22 from 80.12 as the 80.00 figure has been acting as a support area over the past few days.
U.S. Dollar Trading (USD) The mood in the market started to turn sour in the European session as rumors of Italian and Spanish bank downgrades weighed. Also hurting was the jump in EU unemployment rate to the highest in the Unions history. The US session saw more risk off after the April ADP employment reports showed only +119k vs. 209k previously and is a worrying sign for Friday’s report. Looking ahead, Weekly Jobless Claims are forecast at 380k vs. 388k previously. Also, April ISM Services forecast at 55.5 vs. 56 previously.
U.S. Dollar Trading (USD) the dollar soared overnight as the April ISM came in better than expected and we saw stocks hit multi year highs in the US session and the US Dollar strength. The USD/JPY was notable breaking back above Y80 and is being watched closely in Asia today. Looking ahead, April ADP Employment Report forecast at 177k vs. 209k previously. Also tonight, March Factory Orders forecast at -1.6% vs. 1.3% previously.
U.S. Dollar Trading (USD) the USD rebounded today against most risk currencies yesterday as stocks pulled back on profit taking sparked by weak economic data. April Chicago PMI fell to 56.2 vs. 62.2 previously in a dramatic fall in manufacturing confidence back to 2009 levels. Looking ahead, March US PMI forecast at 53 vs. 53.4 previously. Also 3 different Fed speakers tonight could lead to volatility.
U.S. Dollar Trading (USD) the ‘risk on’ mood continued Friday with stocks gaining for a 4th day even as economic data was mixed. Q1 GDP fell to 2.2% vs. 3.0% previously but stocks did not take this too negatively in fact it supports the view that the FED will keep monetary policy in the US loose for an extended period of time. Looking ahead, March Personal Income forecast at 0.3% vs. 0.2% previously.
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