Dollar remains steady reclaims 102 levels on the US dollar index (DXY). Currently trading at 102.21 the US dollar index, a measure of the value of the USD against a basket of foreign currencies, enters its fourth consecutive day of gains. Propped by yields’ rises on the back of some stronger than expected US ADP employment numbers yesterday.
The ADP employment report is widely considered a precursor to next Friday’s Nonfarm payrolls, a gauge of the health of the labour market in the US throughout the month of February. Actual data for ADP was out at 298k jobs created throughout February compared to a previous 246k in the previous period.
In turn a strong NFP is expected to drive the probability of a rate hike in next week’s Fed meeting and that is the real motivation behind support for the USD.
Expected EURUSD weakness towards 1.0525, as anticiapted by TraderTip daily scenario, has already been seen with curent lows at 1.0528 at the moment. We now remain to see if we see some consolidation from here or if the selling bias continues and breaches 1.0511 level. The latter being the lower daily support, and a breach of which would open the door to further downside.
The euro gets the limelight this morning with ECB president Draghi delivering a press conference in Frankfurt today and after which he is set to address a press conference to anounce the ECB’s latest policy decisions. Its bound to be a volatile 2-days as we approach the end of week!