Market Snapshot – Strong ADP Reports Helps in Dollar Recovery

Risks Return to the Markets

We have seen a return of risk in the stock markets since the beginning of the day today but the markets have been a bit mixed as the threats continue to loom. Yesterday we had seen the stock markets correct due to the increase in the global risks and uncertainties but as the US session kicked in, we found that the stock markets began to recover slowly. We have seen many of the markets continue their recovery as well as the DAX has been headed up and has broken through the 12000 region and continues to trade in that region as of this writing. But the risks are never very far away and that is why it is important to be on the toes as far as traders are concerned.

Strong ADP Report Helps the Dollar

It has been a volatile day in the markets so far as we have been seeing the dollar recovering all across the board today. The market was waiting in anticipation of the ADP employment report and the Prelim GDP data from the US. Both these pieces of data came in stronger than expected as the ADP employment report came in at 237K while the Prelim GDP came in at 3%. This has further helped the recovery of the dollar and this recovery is expected to continue in the short term as we wait for the new month ahead. We are going to have much more important data coming in on Friday in the form of NFP and the market would be looking to see for further signs of the recovery in the US economy.