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ADP Employment Soars
The US Dollar rose on the back of a slew of positive data prints yesterday. Both the ADP employment number and the ISM services PMI came in well above expectations. For the APD reading, jobs were seen at 497k, well above the 226k the market was looking for and up sharply from the prior month’s 267k reading. A strong ADP number has obviously stoked speculation that the NFP today might come in higher also.
ISM Services PMI Jumps
On the services PMI, the 53.9 reading was again, well above the 51.3 the market was looking for, and sharply up on the prior month’s 50.3. Given the larger size of the services economy in terms of overall GDP contribution, the data was a strong sign of the health of the US economy. Despite calls throughout the year from some players looking for a US downturn, the data continues to show robust health. As such, rate hike expectations are being underpinned here with the market now almost fully pricing in a July rate hike. Focus now shifts to today’s US labour market data which holds the potential to drive USD sharply higher if we see further strength in those readings.
Technical Views
DXY
The Dollar Index continues to hold against the 103.48 level resistance ahead of the headline data today. Price has been grinding higher over recent weeks but is stalled for now at the level. If we break higher here, 104.95 will be the next resistance level to note. To the downside, 101.22 remains key support.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.