The USD has moved lower after the weaker than expected ADP employment report. Later today we get Unit labor costs revised for Q2, Initial claims and the employment component of the ISM non-manufacturing index. All come before the US jobs report tomorrow.
The ADP is pointing toward a weaker report tomorrow.
The EURUSD is moving away from the 200 hour MA at 1.10987 now after breaking above earlier today.
The USDJPY is falling to a new low of 142.87 and looks toward the August low at 141.678.
The USDCHF is trading to a new low near 0.84315 target. The August low reached last week reached 0.83995 (call it 0.8400)
THe GBPUSD is breaking above its 200 hour MA at 1.31666. Yesterday, the price briefly moved above that level only to rotate back lower. THe price is back above the level tilting the bias more to the upside (lower USD). .
US stocks in pre-market trading are not taking the news well:
Dow industrial average futures are implying a -43 point declineS&P index futures are implying a -20.07 point declineNASDAQ futures are implying a -134.40 point decline
The two year yield is down 5.1 basis points at 3.718%. The 10 year yield is down -3.2 basis points at 3.738%. The two – 10 year spread is now 2.0 basis points in the positive as traders point toward a recession and steeper yield curve.
This article was written by Greg Michalowski at www.forexlive.com.
