It was a very mixed day for the US dollar on Wednesday, which saw varied reactions to data released. ADP Non-Farm Employment Change, which is used as a key indicator for the main figure due on Friday, showed a significant fall in employment. This will be taken alongside the unemployment claims indicator today to judge which way the Non-Farm Employment Figure on Friday will go. ISM Manufacturing Purchasing Managers’ Index (PMI) fell short of expectations, with the manufacturing sector just about showing growth in the usually strong sector – the strong dollar is clearly hurting exports. Federal Reserve members Lockhart and Williams spoke, but mentioned nothing of note regarding interest rates.
Today should be a day just as busy as yesterday, as we see trade balance figures and the unemployment claims figure released. We can expect some movement in markets in the afternoon as investors could either flock to buying or selling the US dollar following the release of the unemployment figure, in anticipation of Friday’s more significant Non-Farm Employment figure.
Factory Orders data will also be released, and is expected to show a fifth consecutive negative figure. Additionally, Federal Reserve member Brainard speaks, which could provide more clues on a possible interest rate rise.