The US dollar received a boost against several of its main currency rivals yesterday, following the release of better than expected ADP Non-Farm Employment Change and ISM Non-Manufacturing PMI figures. Meanwhile, concerns regarding the pace of the global economic recovery sent the price of crude oil tumbling for most of the day. Today, traders will want to pay attention to several potentially significant indicators out of both the euro-zone and US. The euro-zone Minimum Bid Rate and ECB Press Conference, followed by the US Unemployment Claims and FOMC Meeting Minutes, all have the potential to create heavy volatility in the marketplace.
| USD/JPY intraday: further upside. |
Pivot: 78.35.
Our Preference: LONG positions above 78.35 with 78.85 & 79 in sight. Alternative scenario: The downside penetration of 78.35 will call for 78.2 & 78.05. Comment: the RSI is bullish and calls for further upside. |
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Economic News
USD – ADP Figure Brings USD/JPY to 2-Week High
A significantly better than expected US ADP Non-Farm Employment Change resulted in the USD turning bullish against several of its main currency rivals yesterday. The ADP figure is considered an accurate predictor of Friday’s all-important Non-Farm Payrolls figure, and the positive figure boosted confidence in the US economic recovery. The USD/JPY shot up to a two-week high after the indicator was released, eventually more than 30 pips to trade close to the 78.60 by the end of European trading. Against the Canadian dollar, the greenback advanced close to 40 pips before peaking at 0.9883 during mid-day trading.
Today, the USD is likely to see another volatile day as another batch of significant US news is set to be released. Traders will want to pay attention to the US Unemployment Claims figure at 12:30 GMT, followed by the FOMC Meeting Minutes at 18:00. Analysts are forecasting this week’s unemployment figure to come in at 371K, which would be slightly higher than last week’s. If the indicator comes in worse than expected, the dollar could give up yesterday’s gains. With regards to the FOMC Meeting Minutes, should they signal a worsening economic situation in the US, the dollar may turn bearish as a result.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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