EUR/USD rose to the highest since December 2014 on the back of geopolitical fears and locked our profit near 100 pips. Though it recovered later as Trump chose to stand back from further threatens and actions. EUR/NZD met our target as well and locked a winning position more than 200 pips. All eyes today will be on the U.S. GDP and ADP, while Eurozone’s sentiment indicators will attract some attention as well.
U.S. Dollar Recovered as Trump Didn’t Respond to North Korea’s Provocations; ADP and GDP Ahead
The U.S. dollar suffered a strong sell off yesterday against the majors, though during the U.S. session, it managed to retrace back and end the day near its opening levels. Greenback plunged against the Aussie, while it edged significantly higher versus the Japanese yen. The initial dollar slowdown came from fears that the U.S President Donald Trump would reply to North Korea’s act to fire a missile over Japan, however, Trump has not sparked further the geopolitical risks, calming down the traders and recovering the dollar. On the data front, nothing was strong to impact the buck on Tuesday but today the traders will be focused on the ADP employment change and the flash GDP for the second quarter. The ADP is expected to show that companies added 178K jobs in August, the same number as in July. The flash GDP for Q2 will be published and is forecasted to tick higher at 2.7% year-over-year from 2.6% year-over-year before.
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