The data published by Automatic Data Processing (ADP) showed on Wednesday that private sector employment in the US rose by 239,000 in October. This reading came in better than the market expectation of 193,000. September print of 208,000 got revised down to 192,000.
Developing story...
The US Dollar Index showed no immediate reaction to this data and was last seen losing 0.22% on the day at 111.30.
EUR/USD gyrates around the 0.9800 region ahead of the release of US Nonfarm Payrolls on Friday.
The resumption of the buying interest is expected to meet a solid hurdle at recent peaks around the parity zone. Ideally, EUR/USD should leave behind this key resistance zone in the near term to allow for the continuation of the rebound.
In the longer run, the pair’s bearish view should remain unaltered while below the 200-day SMA at 1.0616.
EUR/GBP picks up bids to reverse Friday’s losses. Economists at Société Générale expect the pair to extend its race higher on a break past 0.8720.
“EUR/GBP recently gave a break above the descending trend line drawn since 2020 denoting potential upside. This is also highlighted by weekly MACD which is now firmly anchored within positive territory and above its trigger.”
“The pair is close to key graphical resistance of 0.8720. Once this is reclaimed, the up move is likely to extend towards projections of 0.8860 and perhaps even towards 0.8980/0.9010.”
LONDON (Reuters) - The euro was hovering above Tuesday's two-decade low on Thursday as investors awaited a policy decision from the European Central Bank (ECB) and comments from the head of the Federal Reserve for insight on the path for global monetary tightening.
The ECB is expected to raise rates by 75 basis points (bps), taking its deposit rate above zero for the first time since 2012, but the option of a smaller 50 basis point hike hasn't been ruled out.
"We expect the ECB to only do 50 basis points today, instead of the consensus view of 75," said Chris Turner, head of markets at ING. "If that's the case, we think euro-dollar probably corrects back down to about $0.99."
By 0747 GMT, the euro was trading down 0.3% at $0.99795, holding above its lowest level since late 2002 of $0.9864 as Europe's energy crisis keeps the single currency under pressure and the dollar reigns as the Fed reiterates its commitment to bring inflation down to target.
Fed Chair Jerome Powell is scheduled to participate in a discussion at 1310 GMT -- overlapping with ECB chief Lagarde's post-decision press conference -- with Fed officials soon due to enter into a blackout period prior to the central bank's Sept. 20-21 meeting.
Recent Fed rhetoric has continued to be hawkish overall.
Boston Fed President Susan Collins said on Wednesday that bringing inflation back down to 2% is the Fed's "Job One," while Vice Chair Lael Brainard said tight monetary policy will continue "for as long as it takes to get inflation down."
Money markets lay 79% odds that the Fed will hike by another 75 basis points at this month's meeting, which would increase the fed funds rate to 3.0% to 3.25%.
The U.S. dollar index, which measures the currency against six major counterparts, edged up 0.1% lower to 109.82, after hitting a peak at 110.79 on Wednesday, a level not seen since June 2002.
Sterling weakened 0.4% to $1.1486, heading back toward the previous day's 37-year low of $1.1407, ahead of new British Prime Minister Liz Truss's announcement on her plans to tackle soaring energy bills.
Japan's yen showed some resilience on Thursday, trading little changed at 143.77 per dollar, after reaching a 24-year low of 144.99 in the previous session.
The yen has been a particular victim of recent dollar strength, partly due to its sensitivity to rising long-term U.S. yields as hawkish Fed bets ramped up and the Bank of Japan remains the holdout dovish central bank.
"Ongoing depreciation pressure on the yen has raised the probability of a change in policy (from the Bank of Japan) later this year," Goldman Sachs (NYSE:GS) analysts said in a research note.
"If the BoJ drops YCC (yield curve control), rate differentials vs the U.S. should stop widening, and the rise in USD/JPY should pause or reverse."
Officials from Japan's Finance Ministry, Bank of Japan and Financial Services Agency are meeting today to discuss global financial markets, the Ministry of Finance (MOF) said.
Meanwhile, the Aussie fell 0.5% to $0.67345, earlier tumbling as low as $0.6713, after RBA Governor Lowe said in a speech "the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises."
"It is with sadness that I am resigning as Housing Minister," Conservative MP for Pudsey Stuart Andrew announced via Twitter on Wednesday.
Meanwhile, Sajid Javid, former British Health Minister who quit in protest at Prime Minister Boris Johnson on Tuesday, told Parliament that it had become increasingly difficult to be in PM's team.
"It's not fair on conservative voters who expect better standards," Javid added. "At some point, we have to conclude that enough is enough. That point is now."
GBP/USD stays under heavy bearish pressure on Wednesday and was last seen trading at its weakest level since March 2020 at 1.1877, losing 0.67% on a daily basis.
📕 Comment on Gold on April 29, 2022:
- In yesterday's trading session, after precious metal fell to 1871, Gold rallied strongly to 1896 ($25), closed the day session with a bull pusher and in the early morning of this day Gold continued to rise. up to around 1905. With the current showing of good upward momentum, my view will be to prioritize the bullish option for this precious metal.
- On the H4 time frame, bullish force also prevails and the nearest support area for this precious metal is around 1895-1898, Here we can establish a buy position with a safe target around the threshold. 1910-1915.
- In yesterday's trading session, precious metal Gold went right in its analysis when it bounced up from 1850 to 1872, closing yesterday's session with a bullish candle around 1869. With Gold in today's trading session. Yesterday, it regained its upward momentum after having 1 previous decline, in my opinion, it is likely that in today's session, Gold will still be supported by this increase.
- Switching to the H4 time frame, we can see that the increase of the last 3 candles is relatively good and if in the beginning of today's session, Gold has a slight correction around 1862, this is an opportunity. so that ace can establish a buy position with a safe target in the "old top" zone 1872-1878.
