FXStreet (San Francisco) - The day before the super Thursday the US Dollar recovered ground against almost major competitors except the Sterling. Earlier in the day, the ADP data showed the biggest monthly increase in private jobs since December 2012 forcing experts to revise up their previsions on Non farm payrolls.

Data pushed the EUR/USD to extend its 1.3700 rejection while the GBP/USD advanced for fifth day and the USD/JPY for second straight day.

"Expectations for a firm employment report rose on Wednesday after the ADP report blew away expectations," Jamie Coleman commented in a recent note. "The dollar rose against most majors with the exception of the pound which responded to a huge rise in UK home prices."

The EUR/USD declined for second day to test the 1.3640 level. Currently, EUR/USD is trading at 1.3657, down 0.16% on the day, having posted a daily high at 1.3683 and low at 1.3642.

The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish. "Ahead of the news, critical levels to watch are recent highs of 1.3700 to the upside and 1.3570 to the downside, as a break of any extreme should lead to a continued move," points out Valeria Bednarik from FXStreet.

The GBP/USD advanced for fifth day to trade at 1.7180. Since June 25's lows of 1.6950, the Sterling rose 220 pips in less than a week. Currently, GBP/USD is trading at 1.7166, up 0.10% on the day; the hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bullish.

The USD/JPY continued to extend its bounce from July 1's low of 101.20 and the pair traded as high as 101.85 on Wednesday. Currently, USD/JPY is trading at 101.78, up 0.25% on the day; The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.

Main headlines in the American session

US: ADP Employment Change (Jun) rose to 281K

ISM New York 60.5 vs 55.3 prior

United States Factory Orders (MoM) came in at -0.5%, below expectations (-0.3%) in May

US stocks closed mixed but Dow and S&P at record highs

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!