US ADP jobs miss badly (-33k vs +99k expected)

Frank Walbaum FX Strategies.Asia

Important News for the day

Thu, 03rd, 08:30 CET CH Consumer Price Index.
Thu, 03rd, 14:30 CET US Nonfarm Employment Change.
Thu, 03rd, 14:30 CET US ISM Services PMI.

US data disappoints

The ADP employment change data from the US revealed that 33k jobs have been eliminated from the economy. It was expected that 99k new jobs had been added, yet this figure was badly missed. Markets hence expect that this could be a sign that the Fed cut interest rates soon as the data has shown negative facts. Stock markets as a result used this negative news to rise and the positive sentiment is back in markets. Some US- Dollar weakness also supports such view and helps new demand for US stocks.

Market talk

The Dollar weakness helps the positive risk sentiment and most markets move higher. The EUR and AUD both gear up further momentum against the Greenback, while the JPY is losing slightly. Especially the strong support level based on the longterm monthly chart in this currency pair might give more clarity. If it breaks an escalated move lower might be the result. On another note crypto markets move higher as well. Supported by the stronger Nasdaq in particular BTC might be on track to create a new all- time- high soon. Several altcoins also follow the momentum now.

Tendencies in the markets

Equities positive, USD potentially stronger, Bitcoin positive, ETH positive, oil weak, Silver sideways, Gold weaker, JPY stronger.

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.

EUR/USD remains bid, focus stays on 1.1900

EUR/USD has broken its two-day run of losses and is ticking modestly higher on Thursday, hovering around the 1.1880 area as the US Dollar struggles to find clear direction. Weekly Initial Jobless Claims rose more than expected, taking a bit of shine off the Greenback, but markets are largely in wait-and-see mode ahead of Friday’s US CPI release.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.