If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

EUR/USD sinks to near three-month low on upbeat US ADP employment figures

currency-newsEUR/USD sinks to near three-month low on upbeat US ADP employment figures
The US dollar came out on top again during yesterday’s trading session, after the latest US ADP employment figures printed above expectations.

Meanwhile, the pound is holding its ground so far this morning, with GBP/EUR flat at €1.1662 and GBP/USD stable at $1.3831. GBP/CAD is rangebound at C$1.7137, while GBP/AUD and GBP/NZD are holding steady at to AU$1.8439 and NZ$1.9771 respectively.

Coming up, will a robust ISM manufacturing PMI help the US dollar to maintain its upward momentum today?

What’s been happening?

The US dollar extended its recent winning streak on Wednesday, after the latest ADP employment report beat expectations, with 692,000 jobs added in June.

The upbeat figures helped to bolster expectations that Friday’s more influential non-farm payroll releases may also impress this month.

These gains were also supported by comments from Federal Reserve policymaker Robert Kaplan, who suggested the Fed will begin tapering its monetary policy by the end of the year.

Meanwhile, the euro struggled yesterday due to its strong negative correlation with the US dollar, with a slowing of the Eurozone inflation in June also limiting the appeal of the single currency.

At the same time, after initially dipping on a weaker-than-expected GDP print, the pound was able to rebound on the back of some hawkish comments from departing Bank of England (BoE) Chief Economist, Andy Haldane.

What’s coming up?

Centre stage today will be the release of the latest ISM manufacturing PMI from the US.

June’s figures are expected to report that activity in the factory sector remained robust as more of the US economy reopened.

Alongside an expected drop in US initial jobless claims last week, this could set up the US dollar to trend higher again this afternoon.

In the meantime, the publication of Germany’s latest retail sales figures may pressure the euro this morning, after reporting a smaller-than-expected rebound in sales growth in May.

For GBP investors the focus this morning will be on a speech by Bank of England (BoE) Governor Andrew Bailey, with the pound likely to weaken if he reinforces the BoE’s current dovish stance with his latest comments.
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.