ADP released a whopping surprise – 297,000 jobs gained in the private sector according to their numbers! This huge surprise is far better than other improvements. The result – the greenback surges across the board with EUR/USD losing support.
This tripled the expectations for around 100K jobs gained, and is more than triple the figure seen last month. Although this number isn’t always indicative of the government Non-Farm Payrolls released on Friday, but this is definitely a positive sign, that aDollar dds other jobs and non-jobs related numbers.
EUR/USD is now trading at 1.3160, below the 1.3180 support line. The pair already slipped below the minor line of 1.3267 line beforehand on worries about defaults in Europe. The next line of support is 1.3080 – which is a critical line.
For more technical levels and events, see the EUR/USD forecast.
US factory order surprised yesterday with a rise of 0.7%, contrary to expectations for a drop. ISM Manufacturing PMI rose to 57 points, within expectations, but still a very strong figure. Regarding jobs, last week’s jobless claims fell under 400K (388K), the lowest level since July 2008. All these figures show that the recovery is picking up in the US – it is already felt in jobs.
In my 11 predictions for 2011, I foresaw improvement in the US which will the dollar. In the first days of 2011, this is indeed seen, but the year is very long.
Tomorrow we have a fresh release of weekly jobless claims, which will be the last hint before the big event, the king of forex trading – Non-Farm Payrolls.
See the Non-Farm Payrolls preview.