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
Investing NewsChina’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
ForexAmid 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.
Forex FundamentalsAs 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.
EconomicsOne 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 ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess 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.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.