Jun 04 2008
ADP Nonfarm Employment Change Is Due Today.
Yesterday the USD saw bullish momentum against all of its currency pairs. The USD’s value was boosted by Fed Chairman, Bernake’s hawkish speech and the better than expected Factory Orders, which were released at 1.1% compared with the 0% forecast. Against the EUR, the USD’s positive trend caused the pair to cross the 1.5500 range and trade at around 1.5450 after Bernake’s speech.
In Bernake’s speech held yesterday at the International Monetary Conference in Barcelona, he mentioned the greenback’s negative trend in the Forex market. Bernake rarely speaks about the USD, and yesterday the USD was a big part of his speech. Traders also took notice on his words regarding the inflation being a primary concern and further interest rate cuts being unlikely. The USD’s bullish momentum benefited again an hour later as Factory Orders beat out forecasts. The Crude Oil’s decline yesterday gave the greenback even more positive momentum.
Today is a huge news day for the USD as the very important ADP Nonfarm Employment Change will be announced as part of a batch of announcements expected topped with another speech by Bernake. The ADP estimate foreshadows the actually Nonfarm Employment Change which will officially be released on Friday. Nonfarm Productivity and the ISM Non-Manufacturing Composite will also be released tomorrow and will impact the USD as well. Bernake’s speech will end the USD’s trading day with volatility, but the main impact should be caused by the ADP Nonfarm Employment Change and ISM Non-Manufacturing Composite that are forecasted to be lower than the previous results and should hurt the USD’s recent momentum.
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