A news heavy day follows yesterday’s FX trading that had the USD appreciating while gold and silver prices were pulling back sharply and US equities falling. Highlights include UK construction data and the ADP Unemployment Change.
Today’s Economic Data Releases
GBP – Construction PMI – 08:30 GMT
Expectations: 55.6. Previous: 56.4.
Yesterday’s disappointing UK Manufacturing PMI sent Sterling sharply lower versus both the dollar and the euro. The weak economic data also sent short Sterling futures lower, indicating the market has pushed back expectations for a BOE rate hike, putting further pressure on the pound. GBP/USD support is found at 1.6430 and 1.6170.
USD – ADP Non-Farm Employment Change – 12:15 GMT
Expectations: 200K. Previous: 201K.
Often considered a preview to the all-important jobs report due out on Friday, the ADP non-farm report does not always have a correlation with the report from the US Department of Labor. However, if today’s release shows further improvement in the unemployment sector the report should feed into dollar selling. EUR/USD resistance is found at 1.4900 followed by a target at the 2009 high of 1.5140.
USD – ISM Non-Manufacturing PMI – 14:00 GMT
Expectations: 57.9. Previous: 57.3.
The services sector PMI is indicative of the flat 1.8% GDP growth the US released the previous week. An increase in this month’s reading would help to increase future GDP expectations. USD/CAD support is found at the recent low of 0.9444 with support coming in at 0.9575 and the 50-day moving average at 0.9655.
Oil – Crude Oil Inventories – 14:30
Expectations: 1.9M. Previous: 6.2M.
Yesterday crude oil prices slid 2% on reduced risk sentiment, a decline in US equities and a general bearishness in commodities with gold and silver prices falling. Lower than expected crude oil inventories should help to boost crude oil prices towards this week’s high of $114.80. Support is found at $105.20.
Other relevant articles you may like
Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
