The USD/JPY struck a 3-week peak and the greenback is poised to record a 4th consecutive day of gains after ADP data released yesterday beat all expectations. Often viewed as a “gauge” for Friday’s critical non-farms labor report, yesterday’s release showed that 298,000 new private sector jobs were added to the US economy, against expectations of a decline to 190,000. The government’s NFP report is currently also forecast at 190,000 new jobs which, if realized, would be a fall from February’s 227,000 reported. Any upbeat surprise is likely to broadly support the US Dollar as investors are hopeful that the Federal Reserve acknowledges the data with a view toward more future rate hikes.
As reported at 10:27 am (GMT) in London, the USD/JPY was trading at 14.745 Yen, up 0.27%; the pair earlier hit a peak of 114.9300 Yen before edging back. The AUD/USD was down 0.34% to trade at $0.7499 while the NZD/USD was at $0.6905, down 0.10%.
FX Trade Awaits ECB Decision
In Europe, markets are awaiting a decision from the European Central Bank which would help set the outlook for the common currency. One currency strategist believes that there will be a positive shift from the ECB, with more hawkish expectations. What will continue to weigh on the Euro, however, is growing concern over some upcoming and deemed high risk elections, especially in France and the Netherlands, which could put the focus on anti-establishment contenders. The EUR/USD is currently trading at $1.0565, a gain of 0.21%.