The forex market awaits the results of the ADP Non-Farm Employment Change from the U.S. at 13:15 GMT. The publication will be crucial in determining the value of the U.S. Dollar as end-of-week trading approaches. The forecast is 188,000 people, significantly better than the previous result of 254,000 people. A result similar or better than forecast could lead to a mass sell-off of the safe-haven USD, as investor confidence in a continuing global economic recovery increases.
As of now, the Dollar is trading 30 pips lower against the European currency at the 1.4762 mark. As a result of very optimistic British Services PMI earlier today, the GBP has risen by over 100 pips vs. the USD to the 1.6530 level. The U.S. currency is also trading lower against the Canadian Dollar, as a sell-off of the USD today is already underway. As the trading day passes by, much of today’s trends are likely to continue.
Forex traders are encouraged top take advantage of the weak Dollar, as big money can be made in the next few days. Highly desirable crosses seem to be the GBP/USD, EUR/USD and USD/JPY. Very popular commodities remain to be Gold and Crude Oil. These commodities will be very volatile in the coming hours, as vital U.S. data is set to be published. This includes other publications, such as the ISM Non-Manufacturing PMI, Federal Funds Rate and the Crude Oil Inventories.
