Wednesday, 1 Jul 2009

Dollar Drops Ahead of Non-Farm Employment Change

As the U.S market is set to close, the leading currency pairs have stabilized after an extremely volatile session. This was largely impacted by the ADP Non-Farm Employment Change. The actual result showed that 473,000 individuals lost their jobs during June, showing that despite what seems to be premature enthusiasm that the recession is behind us, the economic situation in the U.S continues to decline.

The monthly Pending Home Sales report for May was also released today. This report showed no significant change from April. The actual result was higher by 1%. This failed to reach forecasts of 7% growth. The combined negative figures have weakened the Dollar against both the EUR and the Pound, as the EUR/USD has recently reached the 1.415 level, and the GBP/USD has reached the 1.647 level.

Tomorrow, in a day that forex traders cannot afford to overlook, a batch of data is expected from the leading economies. In a very rare turn of events, both the European Minimum Bid Rate and the U.S Non-Farm Payrolls will be released on the same day, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.