Dollar Gains Huge Momentum after ADP and ISM Services

By @ibtimes on

The U.S. dollar gained strong momentum today against major currencies after data from the labor and services sector came in better than market expectations, where the ADP employment report showed U.S. private employers added nearly 300,000 jobs in December, while the ISM services index rose expanded beyond forecasts.

The U.S. Dollar index, which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, rose on daily basis to trade at 80.10, compared with the opening level at 79.57, while recording a high of 80.35 and a low of 79.48. Gold prices declined amid the dollar's weakness for a second day to reach $1377.63, compared with the opening level at $1383.85 an ounce, oil prices however rose after the EIA showed crude oil inventories declined below expectations to trade at $90.60, compared with the opening level at $89.27.

The Euro declined heavily against the Dollar, where the EUR-USD pair is trading at $1.3190, compared with the opening level at $1.3319, while recording a high of $1.3325 and a low of $1.3125. The pair is now trading below the $1.3200 level, and so long it remains below this level, we should expect more downside movement and is targeting the $1.3080 level, however, if the pair rises above $1.3200, the next target will be the $1.3265 level.

The British Pound also declined today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.5500, compared with the opening level at $1.5597,, while the pair recorded a high of $1.5628 and a low of $1.5450. The pair is now trading below the important level at $1.5510 and so long it continues to trade below this level, the next target is set at $1.5400, however breaching the $1.5510 level to the upside would send the pair to the $1.5680 resistance.

The U.S. Dollar gained against the Japanese Yen as investors headed to risky assets, where the USD-JPY pair is now trading at ¥83.21, compared with the opening level at ¥82.05, while recording a high of ¥83.35 and a low of ¥81.88. The pair is now trading above the ¥83.15 level, which suggests that the way is open to reach the ¥83.70, but the pair must remain above ¥83.15 in order for this bullish scenario to continue, however, breaching the ¥83.15 to the downside would send the pair to the support level at ¥82.30.

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