- The dollar recovers all the lost ground in minutes, driven by statements by Clarida.
- EUR / USD goes from highs in three days, to return to the zone of lows in six.
The volatility has soared in the American session after a great recovery of the dollar throughout the market. EUR / USD had reached 1.1900 iDriven by US employment data, which was lower than expected, but then a statement from a Federal Reserve official and the ISM services report brought it below 1.1850. The pair made new lows at 1.1835 and is under heavy pressure, now bearish.
Sudden changes in a few minutes
ADP’s employment report for July showed an increase in jobs of 330,000, the lowest rate in the last five months; and well below the 695,000 of the market consensus. It bodes ill for Friday’s nonfarm payroll report. Thursday will be the turn of the unemployment benefit requests.
For its part, the ISM of the services sector was located at 64.1, surpassing the expected 60.4. The employment indicator went from 49.3 to 53.8.
The data was overshadowed by the statements of Richard Clarida, the vice president of the Federal Reserve, who mentioned that he expects the conditions for an increase in interest rates to be met by the end of 2022.
Clarida’s outlook pushed Treasury yields up. The 10-year rate went from 1.12%, the minimum in months to approach 1.20%. This movement generated a strong reversal in favor of the dollar.
Technical levels
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