Wednesday, 2 Sep 2009

Employment Numbers Disappoint, Boosting the EUR

The ADP Non-Farm Employment Change was released early in the NY trading hours, showing the fewest job losses in almost a year. The report came in at 298k job losses, well above economists forecast's of 250k. However, this was enough of a drop from July's employment numbers and added a bit of stability and confidence to the market. As such, the EUR gained on the Dollar, rising to 1.4293 from 1.4191. The high impact U.S. government Non-Farm employment numbers are due out Friday and often follow suit with the ADP reading.

A second major release in the day was the weekly Crude Oil Inventories. The data reported a drop of 0.4m barrels while the forecast called for a fall of 0.8m. The release was more positive, but failed to stop the bearish price trend we have seen all week. Crude Oil is currently trading at $67.70 support line.

Traders should be on the lookout tomorrow for the European Interest Rate decision to influence the trading of the EUR/USD pair. While no change is expected in the rate, the market will be closely listening to the accompanying statement from the European Central Bank to hear their view on the weakening or strengthening of the recession.