Stronger ADP Number HelpThe dollar gained a bit of strength

The dollar gained a bit of strength last night as we saw some stronger figures out of the US at the start of a month where the Fed are predicted to raise rates. The main shot in the arm came from the ADP Non Farm Employment Change which printed +253 k against an expected +181 k, the ISM Manufacturing PMI came out with a better number as well and this continued to support the USD. The Dxy is back up to 97.20 this morning having spent a lot of yesterday’s trading under 97.00.

The UK PMI data also came out slightly better (56.7 ag 56.5) and this helped support the cable and push EurGbp down off recent highs. UsdJpy was one of the main movers overnight as it broke through the cloud, now trading up towards the resistance trend line at 111.50 having been languishing a big fig lower at the start of yesterday’s trading.

Looking ahead to today’s trading and as it’s Non Farms Friday the main focus will be on the big number much later in the day, however we should see a bit more of a continuation of the strong dollar and risk theme with the stock markets finishing up the NY session nicely in the black.

It’s a quiet day in the Asian session, but moving into the London time zone and we have Construction PMI data out at 6.30 pm before we move to the main event at 10.30 pm in the NY session. The Canadians are once again getting in on the act by releasing their Trade Balance data at the same time as NFP’s.

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