USD Set For More Gains Post ADP Data
Nathan Kay | Oct 01, 2014 10:22AM ET
The US dollar is simply unstoppable at the moment, as the economic releases in the US continue to impress the investors. The releases were not that great yesterday, as the CB consumer confidence and the Chicago manufacturing PMI registered a decline. However, the US Employment Change released by the Automatic Data Processing, Inc. today impressed the investors. The forecast was slated for a gain of 8K jobs this time from the previous reading of 202K. However, the outcome was better than the expectations, as on the seasonally adjusted basis the US private-sector employment increased by 213K from August to September 2014.
The US dollar was not seen trading higher immediately, but this is going to lift the US dollar buyer’s mood further. It is currently trading around the elevated levels, but that does not mean that it cannot continue trading higher from the current levels. The president and chief executive officer of ADP, Carlos Rodriguez added in the report that “September’s jobs added number marks the sixth straight month of employment gains above 200,000. It’s a positive sign for the economy to see the 200,000-plus trend continue”.
The EUR/USD pair was seen trading in a range since the start of the NY session. However, after this data one might expect it to lose more ground in the near term. The 1.2550 support area is the key for more downside moving ahead. On the upside, the 1.2640-60 is a monster resistance for the pair.
Euro Area Manufacturing PMI
The euro area manufacturing PMI was released earlier during the London session today by the Markit Economics. The forecast was slated for a minor decline from 50.7 to 50.5. However, the outcome was softer than expected, as the euro area manufacturing PMI fell to 50.3, and just managed to stay above the neutral reading. This was not a good sign for the euro area manufacturing activity.
The euro area manufacturing PMI was one of the reasons why the euro was seen trading lower during the London session. Currently, it is trading right around the previous swing support area. If at all the EUR/USD pair managed to break the 1.2580 level, then it would open the doors for a downside acceleration towards the 1.2550 level. It would be interesting to see whether the pair can manage to break the 1.2550 level or not in that situation.
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