Markets are calm after U.S. data

By IBTimes Staff Reporter | June 03 2010 9:18 AM

The U.S. economy released its ADP employment change showing that in the private sector it was fewer jobs being added in the market than presumed, yet this did weigh on the dollar's strength as the attention is on tomorrow's job report which will determine the job conditions in the U.S. economy. The Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 86.68, while recording a high of 86.84 and a low of 86.29.

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In the euro zone, the service sector was released which showed that it expanded further than expectations and this further supported the fact that the dominate sectors are improving which will boost economic growth. As a result of this data, today optimism spread in markets which helped boost the euro dollar pair which is currently trading at 1.2252 above the support of 1.2200 and below the resistance of 1.2335. The pair so far today hit a high of 1.2326 and a low of 1.2223.

After the pound dollar pair was climbing supported by the UK service sector, we currently see the opposite of this happening, as the four-hour charts are providing us with a downwards trend as currently the pair is trading at 1.4645 above the support of 1.4585 and below the resistance of 1.4730. So far, the pair marked a high of 1.4741 and a low of 1.4633.

The yen tumbled in markets versus major currencies on hint that the global economy is recovering, therefore decreasing demand on the yen as a refuge. The dollar yen pair is currently trading at 92.50 while recording a high of 92.80 and a low of 92.02. Over the four-hour basis, the technical charts are showing us that the pair is being traded in an overbought area as there is a support at 91.80 and a resistance of 93.30.