Wednesday, 5 Aug 2009

Dollar Strengthens on the Release of U.S. Employment Data

The Dollar's volatility continues to increase during today's trading. During the morning, the Dollar dropped against the major currencies, following better-than-expected data from the U.K. The Manufacturing Production report showed an unexpected rise of 0.4% in the total inflation-adjusted value of output produced by manufacturers in June. This promptly strengthened the Pound, and as a result weakened the Dollar.

However, at 12:15 GMT, the ADP Non-Farm Employment Change report was released from the U.S. ADP Says that companies decreased payrolls by 371,000 during July. This result, if verified on Friday, will mark the best figure since the recession began. The market reacted with a correction to the Dollar's value, and currently the EUR/USD is trading at around the 1.4385 level.

Later on today, significant data will continue to be released from the U.S economy, and traders are advised to stay tuned. At 14:00 GMT, the Non-Manufacturing Purchasing Managers' Index (PMI) will be released. Also, at 14:30 GMT, the U.S Crude Oil Inventories is scheduled to be published. These publications tend to have a great impact on the major currencies, creating high volatility in the market.