Jul 31 2008
Strong ADP Pushed the Greenback Up
Yesterday, the greenback saw mainly volatile sessions against its currency counterparts. After the significant appreciation the USD went through on Tuesday, it managed to preserve its relatively high rates.
The USD kicked off yesterday’s trading session with an unexpected boost, as Automatic Data Processing announced that July’s Nonfarm Employment Change report showed a gain of 9,000 jobs in the private sector, well above expectations for a loss of 58,000 jobs. The USD then rose to a 4 week high against the EUR, as the EUR/USD dropped to 1.5523. However, soon after, a dramatic rebound in Crude Oil prices took place. Oil rose by $4 a barrel, crossing the $127 level, and drove the USD back to its original rate before the Employment Change publication.
Today has the makings for a huge news day in the US and for the Greenback. At 12:30 GMT we will likely see strong volatility, as 4 different leading indicators are due. The most important of the events will be the Advanced Gross Domestic Product, which is forecasted to reflect a 2.2% raise as opposed to the same time last year. Another significant indicator will be the U.S Unemployment Claims that are expected to decrease from 406K in the previous week, to 395K.
As most of today’s U.S data is expected to give positive figures, traders must keep in mind that tomorrow the Nonfarm Unemployment Change, one of the most influencing USD indicators, is forecasted by analysts to show an increase of 75,000 jobless individuals. Such results should outcome in a massive volatile session in the next couple of days as markets should experience large fluctuation which could deliver some fantastic opportunities to gain profits. Traders are well advised to take advantage of it and end this week with nice profits.
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