Market Snapshot – Dollar Under the Pump As ADP Disappoints

Stocks Weaken, Euro Strengthens

The euro has rocketed once again today proving the belief that it is on a clear bull run as all news, left, right and center continue to favor the euro and also continue to push the dollar downwards. The latest news events that caused this were the ECB minutes which showed that the members did discuss on easing but they decided to wait for the inflation to reach the right figures before they begin to take action. This is a clear signal that the ECB is indeed looking at easing the QE and this helped to push the euro higher. There were more shocks in store for the dollar as the ADP employment change missed expectations and came in at a lower number which put further pressure on the dollar and helped the EURUSD to move higher towards 1.14 during the day.

Slew of Data Scheduled for Next Couple of Days

This marks the beginning of what promises to be a volatile end to the week for the markets as the ADP news is followed by the unemployment claims. This will then be followed later on by the oil inventory data and with the US planning to sell off some of its inventory to pay off some debt, we saw a correction in the oil prices yesterday which should make the data today pretty interesting. Then we move on to the next day where we have the NFP data coming in later tomorrow which the market is expected to follow very closely, especially with the ADP data failing to meet expectations today.

Gold Trading Subdued

Gold prices continued to trade in a subdued manner and it has not been able to either break higher or lower despite the volatility in the euro and the dollar. The weakness in the dollar has been compensated by the strength in the euro which has made the euro an attractive place and a currency to invest in and this has taken some of the sheen off the gold and that is why we are seeing the gold prices under pressure for the past couple of days.