While the focus of the wider market will undoubtedly remain largely on Italy and the ongoing volatility in the bond and stock markets, some forex traders’ focus will momentarily turn away from politics and back to economic fundamentals today. That’s because we have key data coming from the United States later on today while the Bank of Canada is also scheduled to make a rate announcement.
The U.S. dollar gained against major pairs thanks to strong economic indicators and the end of month and quarter flows. The greenback had a positive week ahead of the Easter holiday. The first week of April will kick off with a plethora of U.S. economic data, the most important of all the U.S. non-farm payrolls. Central banks will get back into action with the Reserve Bank of Australia (RBA), although no changes to monetary policy are expected in the next meeting.
Sterling received a lifeline on Wednesday, after UK services unexpectedly accelerated in September, easing some concerns over the health of the economy.
With geopolitical risk once again appearing to subside, attention will turn back to the fundamentals on Wednesday as we enter the business end of the week with regards to economic releases.
U.S. indices are on course to open a little higher on Wednesday, buoyed by stronger earnings from Apple on Tuesday and ahead of some important jobs data from ADP which will act as a precursor to Friday’s non-farm payrolls number.
Comments on Sterling, dollar and the impending ADP NFP Report.
The U.S. dollar and Treasury yields across the curve bounced higher after the Fed signaled that a June rate hike is still on the way.
U.S. companies hired the fewest workers in six months in April as they faced increasing difficulty finding qualified workers in a tightening labor market, a report by a payrolls processor ADP showed on Wednesday.
U.S. stocks rose on Wednesday after solid private employment data underscored the strength of the economy, boosting financial stocks and helping calm investor jitters over President Donald Trump's ability to deliver on his policy plans.
The battle of words between politicians on the Brexit topic has started with a bang as debates take place in Strasbourg.