{"id":161183,"date":"2019-12-05T10:30:37","date_gmt":"2019-12-05T15:30:37","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=161183"},"modified":"2019-12-05T09:04:16","modified_gmt":"2019-12-05T14:04:16","slug":"us-data-weakness-hits-usd","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/us-data-weakness-hits-usd\/","title":{"rendered":"US Data Weakness Hits USD"},"content":{"rendered":"
December 5, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

USD Lower on Data Weakness<\/strong><\/h2>\n

The US dollar has come back under pressure over the last 24 hours as further data weakness has weighed on sentiment.\u00a0\u00a0The ISM Non-Manufacturing reading<\/a>\u00a0was weaker than expected over November at 53.9 vs 54.5 expected, though at least remained in expansionary territory.<\/strong>\u00a0The ADP employment change reading was also weaker than expected. Data came in at 67k jobs vs 137k expected, raising the risk of a weak reading in Friday\u2019s NFP release. USD index trades 97.47 last.<\/p>\n

EURUSD Higher on USD Weakness<\/strong><\/h2>\n

EURUSD has been higher over the European session so far on Thursday as weakness in the USD allows for recovery in the single currency.<\/strong>\u00a0In light of recent data weakness and comments from ECB\u2019s Lagarde (who said the ECB remains committed to achieving its 2% inflation target), the outlook remains bearish for EURUSD. Currently trading 1.1091 last, and approaching the bearish trend line from mid-2018 highs.<\/p>\n

GBP Breaking Out<\/strong><\/h2>\n

GBPUSD continues to forge higher ground today after breaking out above the 1.3033 resistance.\u00a0The latest UK elections polls show that the Conservative party remains in the lead with around a 10% lead on Labour.<\/strong>\u00a0For now, price action seems to reflect the view that elections outcome will either result in Brexit being delayed further or Johnson\u2019s deal being pushed through, keeping GBP supported for now.<\/p>\n

SPX500 Recovering Well<\/strong><\/h2>\n

Risk assets have continued to recover into the back-end of the week following initial weakness in response to concerns over US\/China trade talks. The SPX500 has traded back up to 3117.53 today, recovering firmly off the 3069.48 lows.\u00a0The recovery has been helped by a Bloomberg report suggesting that a US\/China trade deal is still close, despite recent tensions over Hong Kong. This report comes after Trump spooked markets by suggesting that a deal might not come until after the US elections next year.<\/strong><\/p>\n

JPY & Gold Lower<\/strong><\/h2>\n

Safe havens have been weaker today, in light of the ongoing recovery in equities prices, seeing both JPY and gold lower against the US dollar.<\/strong>\u00a0USDJPY trades 108.94 last, still above the 108.84 level for now. XAUUSD trades 1474.60 last, down firmly off the 1500 level.<\/p>

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Oil Rallies \u2013 OPEC In Focus<\/strong><\/h2>\n

Oil prices have continued to push higher into the final days of the week with crude recovering strongly off the 55 level tested last week.\u00a0The EIA report released yesterday<\/a>\u00a0showed US crude stores falling by nearly 5 million barrels last week.\u00a0Focus now shifts to the OPEC meeting which begins today and is expected to see the group announcing fresh production cuts. Crude trades 58.36 last, testing the recent highs around 58.61, which are holding as resistance for now.<\/strong><\/p>\n

Crude Keeps CAD Supported<\/strong><\/h2>\n

USDCAD has been lower across the European session so far on Thursday. Weakness in USD, on the back of further data misses yesterday, as well as strength in oil prices, is boosting CAD here. USDCAD trades 1.3184 last.\u00a0Along with the OPEC meetings getting underway today, CAD traders also get domestic trade balance data which could offer some movement.<\/strong><\/p>\n

AUD Down on Data Dump<\/strong><\/h2>\n

AUDUSD has been lower today despite the pick-up in risk appetite and recovering optimism over a US\/China trade deal.\u00a0Data overnight showed a weaker than expected retails sales print for the last month as well as a far smaller-than-expected trade surplus of just 4.5 billion AUD (vs 6.5 billion AUD forecast).<\/strong>\u00a0AUDUSD trades .6833 last.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex USD Lower on Data Weakness The US dollar has come back under pressure over the last 24 hours as further data weakness has weighed on sentiment.\u00a0\u00a0The ISM Non-Manufacturing reading\u00a0was weaker than expected over November at 53.9 vs 54.5 expected, though at least remained in expansionary territory.\u00a0The ADP employment change reading was also weaker […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-161183","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=161183"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161183\/revisions"}],"predecessor-version":[{"id":161194,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161183\/revisions\/161194"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=161183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=161183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=161183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}