Encouraging signs that Greece is closer to receiving a new round of bailout funds, combined with positive Spanish economic data, led to risk taking in overnight trading. Higher-yielding currencies and commodities, including the euro, Australian dollar and gold were able to benefit from the news.
Meanwhile, speculations that Japan will soon unveil a new round of monetary stimulus caused the USD/JPY to spike during the Asian session. The pair was able to gain close to 50 pips, eventually peaking at 82.33. A slight downward correction during early morning trading brought the greenback to its current level of 82.22.
Main News for Today
US ADP Non-Farm Employment Change-13:15 GMT
• The ADP figure is considered a valid predictor of Friday’s all-important Non-Farm Payrolls data
• Analysts are forecasting today’s news to come in at 129K, significantly below last month’s 158K
• A worse than expected result today could lead to the USD/JPY giving up some of its recent gains
USD ISM Non-Manufacturing PMI- 15:00 GMT
• Today’s PMI is forecasted to come in below last month’s
• A worse than expected result may lead to dollar losses during afternoon trading
US Crude Oil Inventories- 15:30 GMT
• Today’s inventories figure is forecasted to show an increase in American oil consumption over the last week
• Should the figure come in below the expected -0.4M, the price of oil could increase as a result
Read more forex news on our forex blog