Wednesday, 1 Jul 2009

Dollar Dives on Release of ADP Non-Farm Employment Change

The U.S. market recently opened on Wednesday with the publication of the ADP Non-Farm Employment Change release from the U.S. The actual result was -473,000, considerably worse than the forecasted -388,000. The release measures the number of employed people during June (excluding the government and farming industry). The negative number signals that the economic situation in the U.S. continued to decline last month. Volatility has already led to a great shift in major currency crosses.

The U.S. Dollar already dived significantly as a result of the poor figures. This is as forex traders sell-off the USD as the economic situation in the U.S. continues to deteriorate. The EUR/USD rate is currently $1.4111 per EUR. The GBP/USD rate is currently trading at 1.6475. Since the release of the data, Gold has risen over $7 an ounce, and stands at $938.30, as traders seek a safe-haven.

Forex traders are advised to follow the result of the ISM Manufacturing PMI at 14:00 GMT, U.S. Pending Home Sales at 14:00 GMT and Crude Oil Inventories at 14:30 GMT. The Dollar may continue to go bearish in the coming hours, as traders lose confidence in the U.S. economy. Furthermore, we may see Gold and Crude Oil prices increase as a result of this.