US FX Handover: Abysmal ADP, Pristine PMI, Dollar Dump Undone
Matt Weller, CFA, CMT June 5, 2019 8:57 PM
See a summary of the top FX themes and trends from today's US session!
- Today’s top-tier US data painted a mixed picture: The May ADP Employment report printed at just +27k, well below expectations of 185k and the lowest reading since 2010. On the other hand, the ISM Non-Manufacturing PMI rose to 56.9, above 55.4 expected. The widely watched employment component of the report rose to 58.1 from 53.7 last month.
- The market is becoming increasingly convinced that the US will NOT impose tariffs on Mexico, a sentiment recently echoed by Republican Senator (and head of the Senate Finance Committee) Grassley. Negotiations kick off tomorrow ahead of Monday’s deadline.
- Both the US dollar and 2-year treasury yields recovered sharply off their morning lows – could this mark a near-term bottom? Traders are looking ahead to tomorrow’s ECB meeting and Friday’s NFP report for guidance.
- In an unusual development, the New Zealand dollar was today’s strongest major currency, while its neighbor the aussie was the weakest major.
- Oil prices continued their collapse, with WTI shedding another 3% after a big unexpected buildup in inventories.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.