Strong ADP Figures
We have a strong ADP number which printed 298k versus the forecast figure of 187k. The economic news announcement of the ADP has given support to the US dollars and rates.
Looking at the USDJPY, it went to as high as 114.75 before sellers came in and it fell lower.
US 10 Year Treasury yields went northwards and reached a high of 2.58% overnight.
Market participants seem unwilling to push the market too far from where it started from last night as the NFP figures will be released later this week.
The NFP has been forecast to come in below the 200k figure which is lower than the 227k figure but the ADP figures coming in stellar, there should be some revision to that expected number.
A strong NFP figure well above 300k will be required before we can see the the US dollars moving higher.
China’s Imports Growth Number
In asia, China gave us an interesting Imports Growth number and we have rare trade deficit as imports surged to 44.7%y/y overtaking exports growth of 4.2%y/y. The number indicates strong domestic consumption as the Chinese embrace consumerism.
ECB Press Conference
The ECB Press Conference will commence later at 9.30 pm Singapore time. The rate decision is expected to be a non event. At the moment EURUSD is trading at 1.05292, not way off from the 1.05 round number level.
US Unemployment Claims
The US Unemployment Claims figure will also be released around the same time. Although it’s generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health. This is due to the fact that consumer spending is highly correlated to labor-market conditions.
Unemployment is also a major consideration for those steering the country’s monetary policy.
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