The U.S. dollar fluctuated heavily since opening the session today ahead of the ADP employment change from the world's largest economy, especially after the U.S. public sector didn't add any jobs to the economy in August with all eyes focused on the jobs report on Friday.
Investors are watching the ADP employment change closely, in attempts to predict what the U.S jobs report may bring on Friday, especially after unemployment remained above 9% during the past five months.
The U.S dollar index (USDIX) opened the session at 78.95 and recorded the highest at 79.59 and the lowest at 78.82 after fluctuating heavily during the European session, and currently the index returned to trade at 78.99 around the opening level.
The slight optimism seen in European equities supported the common currency to rebound against the U.S. dollar, despite the downbeat services and retail sales data, awaiting the steps taken by the European Central Bank tomorrow, while some economists expect the Bank to leave rates unchanged at 1.5% due to the rising inflation, while others predict the bank to cut rates with at least 25 bp.
The common currency fluctuated heavily against the greenback during the European session, where after the opening of 1.3346, the EUR/USD pair retreated to a low of 1.3259, and then rebounded to reach the highest at 1.3374, and is currently trading around 1.3338.
On the other hand, the sterling pound recovered some of the losses recorded against the U.S. dollar after the cheerful performance of the services sector which retreated less than expected to 51.1 from 52.9 compared to the euro zone and Germany sectors which contracted further, yet still trading lower than the opening level seen today due to the downbeat gross domestic product which showed the U.K economy is faltering after the slight 0.1% expansion in growth.
The sterling pound retreated against the U.S. dollar and the euro today awaiting the rate decision from the Bank of England tomorrow, where the GBP/USD pair opened the session at 1.5485, and recorded a high of 1.5493 and then reversed to the downside to reach the lowest at 1.5411 and is currently trading around 1.5443.
Concerning the EUR/GBP, the pair opened the session today at 0.8615, recording a high of 0.8639 and a low of 0.8588 and is currently hovering around 0.8629.