Wednesday, 3 Mar 2010

Dollar Continues Bearish Trend Ahead of ADP Figure

The Euro continued to rally against the U.S. Dollar throughout the day today, as fresh details about an EU bailout for Greece began to emerge. Adding to the Dollar's recent bearish direction are investor concerns about buying the greenback ahead of the Non-Farm Employment Change figure set to be released on Friday. EUR/USD is up almost 20 pips from this morning and is currently trading around the 1.3640 level. GBP/USD has also gone bullish as of late, increasing over 40 pips from this morning to its current level of 1.5047.

USD will have ample opportunity in afternoon trading to recoup some of its losses. At 13:15 GMT, the ADP Non-Farm Employment Change will be released. The ADP is a prediction of Friday's employment figure and typically leads to heavy market volatility for Dollar pairs. At 15:00 GMT, the ISM Non-Manufacturing PMI is set to be released. The PMI is a survey of American purchase managers in the service industry. It is a solid indicator of the direction the U.S. service sector is heading and the results could give the Dollar the necessary momentum to make some real gains.