ADP to guide markets, Dollar reactive

Frank Walbaum FX Strategies.Asia

Important news for the day

Wed, 04th, 14:15 CET US ADP employment change.
Wed, 04th, 16:00 CET US ISM services pmi.

USD momentum

Currently it seems that markets wait for a new impulse and hence start a potentially new direction. While the USD index remains bullish in the short- term, the downside momentum is not affected. Today’s news event might hence be important and causing a breakout. If the ADP news release will offer a stronger reading, more upside momentum in the Greenback might also be seen, pushing the USD index to the upside and causing the EUR to lose steam.

Market talk

Stock markets remain in a waiting pattern, while major indices remain in a sideways trading zone. Defensive stocks continue to outperform markets, while the AI story remains a burden especially for the NASDAQ index. With the earnings season being in full swing now, traders should focus on the array of data, which will be on the economic calendar this week. In the meantime, precious metals continue their path to the upside but might face a tough time after the recent rally towards record- prices. Ahead of the BoE interest rate decision tomorrow, the GBP is already gearing up fresh momentum.

Tendencies in the markets

Equities sideways, USD mixed, crypto sideways, oil positive, Silver sideways, Gold positive.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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