Forex Trading TV Video Blog

Yesterday the greenback saw mixed results against most of its currency rivals. The USD fell to a two-month low against the EUR after the ADP reported that NonFarm Employment in the US will fall hard in June. The EUR/USD pair rose just above 60 points yesterday ending the trading day at 1.5859. Versus the JPY the USD fell to 106.05 from 106.68, and after gaining some ground versus the CHF in the early part of the day going as high as 102.30, the greenback ended up losing 100 points closing just above 101.30 .The dollar did pick up points yesterday as the GBP/USD pair fluctuated between 1.9926 and 1.9850 after a scare in the housing sector in the UK when housing shares fell broadly shaking prices and confidence.

The ADP report looks to be the real indicator of what today’s movement will likely be, as the numbers show that there was a loss of 79k jobs in June, far more than the expected loss of 20k jobs. Last month’s surprise report of 40k jobs created was also revised to show that only 25k new jobs were actually created. Also yesterday, the US Treasury Secretary Henry Paulson in a speech regarding global markets said that the current crisis was caused by bank compensation packages, which rewarded success but didn’t punish failure. He pointed out the necessity for the government to let major financial institutions deal with issues on there own, without the immediate intervention of larger governing bodies in order to sustain a free market environment. His comments sparked even more volatility to yesterday’s fluid Forex market.

Today is a huge news day for the USD, headlined by Nonfarm Payrolls Employment Change. The ISM Non-Manufacturing Composite and the Unemployment Rate will also be released today and should impact the USD as well. Nonfarm numbers are currently forecasted to have dropped by an extra 11K from May’s mark of -49K. The move will mark the sixth consecutive month that this critical measurement of the US economy has fallen. ISM Non-Manufacturing Composite, which measures the activity level, new orders, employment and supplier deliveries of purchasing managers in the services sector, is being forecasted to see a reduction from 51.7 to 51.1 while the Unemployment rate is forecasted to improve slightly from 5.4% to 5.5%. The main impact should be caused by the Nonfarm Employment Change and ISM Non-Manufacturing Composite results will likely put the USD in a bearish trend as we head into the holiday weekend.

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