- US economy grows at a rate of 2.9%, above the expected 2.6%.
- Private employment measured by ADP rises to 127,000, below the 200,000 market consensus.
- The dollar initially reacted with a fall but then recovered.
The EUR/USD remains around 1.0360/70after US economic data came out. The pair traded as low as 1.0392 after ADP, but then gave back the gains on the GDP figures, falling towards 1.0355.
It is trading sideways with an intraday bullish bias. To the upside, the Euro continues to lose momentum as it approaches 1.0400. In the opposite direction, support appears at 1.0350 and then at 1.0330, before the important 1.0320 area, which if it yields would trigger further declines.
After the data, more data comes and then Powell
The ADP private sector employment report showed growth of 127,000 in November, below the 200,000 market consensus and less than 239,000 in October. It is the lowest number since January 2021. Then another report showed that the economy grew at an annualized rate of 2.9%, above the previous estimate of 2.6%, which was expected to hold.
Chicago PMI and home sales data will be released later on Wednesday. In the second half of the American session, Jerome Powell, the chairman of the Federal Reserve will give a speech and the central bank will publish the Beige Book. Powell’s words are awaited with great anticipation and could have a broad impact on the market.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
