US Wrap: Crushed Loonie leads fellow currencies lower
- The US dollar is in demand ahead of the release of the nonfarm jobs report
- The ADP job data gain of 190,000 jobs bolstered nonfarm forecasts
- The Loonie was crushed on a dovish Bank of Canada statement
- Short-term EURUSD technicals look bearish
NY Focus: The US dollar was mixed to start the day on Wednesday, with traders looking ahead to the ADP employment data for the US, for clues to Friday’s nonfarm payrolls report. But there weren't any. The greenback got it together by the end of the day, and posted gains against all its main rivals apart from the Japanese yen and British pound, which were close to unchanged on the day.
Wall Street finished with tiny losses in the Dow Jones Industrial Average and S&P 500 and a tiny gain in the Nasdaq. A drop in energy shares was blamed for the move.
Thursday Focus: EURUSD could be busy if Eurozone Q3 GDP (forecast 0.6%) differs from the previous print, or if European Central Bank president Mario Draghi delivers any comments on monetary policy at the Bank for International Settlements conference. If Draghi does not comments on policy, it will be an extremely dull session until Friday’s nonfarm payrolls report.
The short-term EURUSD technicals are bearish while prices are below 1.1830, looking for a break below 1.1780 to extend losses to 1.1710.
Source: Saxo Bank. Create your own charts with SaxoTrader; click here to learn more.
– Edited by Robert Ryan
For more on forex, click here.