The USD trades weaker ahead of ADP and ISM releases! 

  • The Dollar Traded very weak against most pairs and into safe havens such JPY and CHF as uncertainty on the economic outlook continues. The uncertainty is due to the release of worse than expected core economic releases as well as Ben Bernanke's dovish stance on the US economy. ADP employment and ISM manufacturing is up today as they are expected to prepare the grounds for Fridays NFP report. US sentiment improved though and stocks were able to finish higher as June House Price Index showed a 4.2%y/y and CB Consumer Confidence increased to 53.5 in August. The DJIA closed +4 points at 10014 and the S&P closed +1 points closing at 1049. USDJPY price action on the day was between 84.59 - 83.81 despite Bank of Japan pledging an extra 10 trillion Yen in an effort to weaken the currency.

  • The Euro lows of the day were seen into the European session before a solid rally in EUR/JPY helped lift and then strong US data inspired risk on trades. German Unemployment at -17k in August was roughly as forecast. EUR/USD traded with a low of 1.2624 and a high of 1.2744 before closing at 1.2675. Looking ahead, July German Retail Sales forecast at 0.5% vs. -0.9% m/m previously.                                                        

Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.2660 with a preference to enter into Long positions at 1.2670
  • § The USDJPY pivot point is at 84.60 with a preference to enter Short positions at 84.55               

Today's calendar and market movers:

  • § United States ADP National Employment for Aug expected at 19K
  • § ISM Manufacturing for August expected at 53
  • § United States Crude Oil Inventories for the week expected at 1.3 mio 

Equity Markets: 

  • US equities closed positive yesterday with the S&P500 at 0.04% and the DJIA at 0.05%. The European bourses were positive with the FTSE up 0.45% the DAX and the CAC closing at 0.22% and 0.11% respectively. The NIKKEI and the HSI at the time of writing is 0.92% and 0.39% respectively.