Market Snapshot – Important Data Coming Up Tomorrow

Dollar Recovery Continues

The dollar recovery has continued for the day today as the effect of the strong data from the US yesterday continued to rule the markets today as well and this led to the dollar pushing itself against a variety of currencies. The EURUSD corrected further and it continues to remain under pressure as the market awaits the big data event tomorrow in the form of NFP. This is something that the market will be looking forward to and a strong data in the NFP would confirm that the US economy is recovering. The fact that the ADP employment report and the Prelim GDP data from the US exceeded expectations has led the market to suspect that the Fed might soon look to raise rates and a strong NFP data would basically confirm the notion and lead to a even bigger rally in the dollar.

Euro Rally Fizzles

It remains to be seen whether the onslaught from the dollar would rock the uptrend in the euro and we will also have to see whether the euro rally has indeed stalled and we could now see a large correction in the rally or maybe even a total reversal as the summer holidays ends and a large number of traders return back to their desks over the next week or 2. The data tomorrow is likely to be crucial in determining whether the rally can sustain itself in the short term.