Strong ADP raises hope amongst traders.
UK Interest rate remains unchaged.
Yesterday, a stronger than expected ADP Nonfarm release pushed the greenback up a bit, and the EUR/USD is now trading at 1.4100 together with the USD/CHf that is now trading around 1.1790.
The ADP was released at 58K with expectations for around 50K and a previous figure of 27K. The ISM Non Manufacturing prices was also released a bit higher than expected at 66.1 and helped the greenback to keep head above water yesterday.
The Bank of England kept its interest rate unchanged at 5.75, which was quite expected considering the current high relative GBP value of 2.0350 against the USD.
The ECB is also expected to release their interest rate, and it is widely expected to remain unchanged at 4.00%. The ECB has no interest in a rate hike at the moment as the EUR is trading at a very high level at the moment against all crosses.
There are many arguments as to whether this is the beginning of the much anticipated USD correction, or that it is merely a technical move a head of the truly big fall. The much anticipated release of the Nonfarm Payrolls tomorrow will probably help to draw a clearer picture of the recently deteriorating US economy, and will hint as to whether we will go back to seeing the EUR/USD to normal levels of the 1.30 zones, or we are heading firmly to the 1.46 area.
The relatively strong ADP might create optimism amongst traders that we will indeed see a positive figure from the US jobs report, although the correlation is usually argued to be quite low.
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