ADP came in at 263,000 – miles above the 180,000 expected
The ADP number isn’t a good predictor of the actual Non-Farm Payroll number. However, it can give a “heads-up” for a big surprise, up or down. So today’s reading suggests we should get a strong reading on Friday.
Despite a long run of strong jobs numbers there are some concerns that US economic growth isn’t as robust as it should be. Survey data such as Consumer Confidence, ISM Manufacturing and Non-Manufacturing PMIs may be robust, but “hard data” (with the exception of employment numbers) like Durable Goods, Retail Sales, Construction Spending, Vehicle Sales and Factory Orders have all disappointed recently. This is happening as the Fed proceeds to tighten monetary policy and even hints of starting to wind down its balance sheet later this year. Meanwhile Donald Trump’s promised tax cuts, infrastructure spending, and even regulatory roll-back still look like election promises which may be fulfilled sometime in the future rather than providing fiscal stimulus right now.
Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you can afford to take the high risk of losing your money.
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EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.