- The euro is among the weakest in the G10 on Wednesday.
- Mixed results for the dollar, the DXY rises marginally.
- USA: the ADP report is coming, in the run-up to the official employment report on Friday.
The EUR / USD is trading around 1.1855 / 60, at the same level where it closed on Tuesday. Previously it fell to 1.1841, the lowest level since last Thursday. The rebound eased the downward pressure, but the very short-term bias still favors the dollar.
The euro is among the weakest on Wednesday, while the dollar presents mixed results. The DXY rises 0.02%, and is above 92.00, while the yields of Treasury bonds and European stocks are up modestly.
From PMI to ADP, via the ECB
The statements of the member of the Governing Board of the European Central Bank (ECB), Martin Kazaks, suggest that the bank remains in an instance of see and wait. The official stated that it is premature to make a judgment on the evolution of the emergency purchase program in September. His comments may have favored the euro’s pullback.
On the data side, the final Eurozone service sector PMI Markit figures showed downward revisions overall. For the region it went from 60.4 (preliminary) to 59.8, for Germany from 62.2 to 61.8 and for France from 57 to 56.8. In another report it was known that retail sales rose 1.5% in the Eurozone, below the 1.7% of the market consensus; and those of May were revised from + 4.6% to + 4.1%.
The key event of the week will be Friday with the official US employment report that includes the unemployment rate and non-farm payrolls (consensus: 880,000). Wednesday’s ADP report on the private sector stands out. The expectation is that 695,000 jobs have been created. Later on Wednesday the ISM of the service sector will come out. This data can have an impact on the market and on the dollar.
Technical levels
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