Buck sinks despite upbeat ADP data just released, projecting that 250k jobs would have been added in the non-farming sector in the US in December. The upbeat figures fail to lift the USD against its six major peers, with the dollar index going down in the dumps in the area of 91.65-.60.
Buck in the Trough Against ADP Odds
It seems that not even the glamorous ADP data can take the pressure off the buck, with the EURUSD continuing to struggle around 1.20723 and quickly retreating. However, the selling pressure around the buck seems to have eased a bit following the ADP data.
The reading exceeded by far even the most optimistic projections and bettered last month’s 190k actual, thus providing a long-awaited-for break for the USD bulls.
Overall, EURUSD remains in the vicinity of 4-month tops, as investors were reluctant to place any aggressive bearish bets ahead of the NFP Friday.
Bulls will be eyeing a break above 1.2070 levels as the pair’s potential to hit 1.2100s and head off towards 1.2165 and above is high.
Buck in the Trough Against the Sterling
Ahead of the ADP data, the buck failed to build on its overnight recovery against the Sterling. Despite the hawkish FOMC minutes and the encouraging ADP projections and the somewhat promising recovery in the US treasury bond yields.
By comparison, Sterling investors saw a boost in the GBP from the upbeat UK services PMI, which got up 54.2 in December compared with 53.8 in November, as expected.
Following a daily open at 1.35107, GBPUSD is hovering now above 1.35477. Breaking above the second line of support, the pair is en route to S1 at 1.3503.
Ahead of the crude oil inventories report, WTI crude started the day at $61.81 per barrel, the highest since May 2015. As the wave of extremely cold weather continues to hit the US, the demand for heating oil has increased. This, in turn, provided some fresh impetus for WTI crude stockpiles, which gained about 0.50%.
Brent crude rose 0.31%, starting the day at $67.92 per barrel.