{"id":8153,"date":"2010-04-01T07:37:45","date_gmt":"2010-04-01T11:37:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8153"},"modified":"2010-04-01T07:37:45","modified_gmt":"2010-04-01T11:37:45","slug":"weak-us-data-cools-dollar-strength","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/01\/weak-us-data-cools-dollar-strength\/","title":{"rendered":"Weak US data cools Dollar strength"},"content":{"rendered":"<p><strong>By eToro<\/strong> &#8211; After firm gains on Tuesday a disappointing US job figure pushed the  Dollar to weekly lows. The ADP employment figure monitoring private  hiring has shed 23k jobs against market consensus of a 40k rise. The  highly regarded figure which is considered to be a good indicator for  the key Nonfarm payroll which follows has shaken investors\u2019 confidence  on the US job market recovery with market players fearing Friday\u2019s  nonfarm figure could majorly disappoint. Investors are eyeing the US job  market very closely for 2 major reasons, the health of the US job  market is the main factor affecting the Fed\u2019s rate policy moreover since  around 2\/3 of the US economy is consumer spending, only an improving  job market can support a recovery in customer spending.<\/p>\n<p><strong>Dollar selling accelerated on upbeat EU inflation- <\/strong>Meanwhile  in the EU the inflation figures released showed EU inflation rose to  1.5% yy up from 0.9% yy in February mainly attributed to the recovery in  energy prices. Although rate hikes in the EU and the US still look  remote with FX traders targeting the end of 2010 for the first  tightening step, the FX sentiment is fluctuating alongside investors\u2019  bets which side will raise rate first. With the weak US jobs figure  denting US tightening bets and the EU upbeat inflation heating up  speculations on rate hikes in the Euro zone by the end of 2010. The  EUR\/USD gain was well supported with Euro rising strongly from as low as  1.3414 to its weekly high at 1.3548.<\/p>\n<p><strong>Ahead of the NFP figure in Friday-<\/strong> Market is eyeing a  200k gain in the Nonfarm figure and any figure below will be considered  a disappointment. Although the Dollar was sold heavily after the US ADP  employment figure the consensus is still that the US recovery is to  outpace that of the Euro zone. If the Nonfarm figure will be in line  with expectations the Dollar which currently trades close to its support  levels could rebound very quickly. The effect on Friday might be  diluted as the US stock markets will be close for a holiday, but the gap  is expected to be closed on the following Monday. A disappointment from  the figure will move the Dollar to retest its support levels as  investors\u2019 confidence in a US job market recovery could be shaken.<\/p>\n<p><strong>Daily Forex Market Analysis provided by<a href=\"http:\/\/www.etoro.com\/A15748_TClick.aspx\" target=\"_blank\"> eToro<\/a><\/strong><\/p>\n<p>Disclaimer: Trading in the Foreign Exchange market might carry       potential rewards, but also potential risks. You must be aware of the       risks and are willing to accept them in order to trade in the foreign       exchange market. Don\u2019t trade with money you can\u2019t afford to lose.<\/p>\n<p><strong><a href=\"http:\/\/www.etoro.com\/A15748_TClick.aspx\" target=\"_blank\">\u00a9 2009 eToro Blog.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By eToro &#8211; After firm gains on Tuesday a disappointing US job figure pushed the Dollar to weekly lows. The ADP employment figure monitoring private hiring has shed 23k jobs against market consensus of a 40k rise. The highly regarded figure which is considered to be a good indicator for the key Nonfarm payroll which &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/04\/01\/weak-us-data-cools-dollar-strength\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Weak US data cools Dollar strength&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8153","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=8153"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8153\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}