The dollar recovers 100 pips; EUR / USD down
The dollar has reacted positively to economic data on Tuesday and Wednesday and is rebounding strongly from Tuesday’s lows of 91.75.
The dollar was trading well on Wednesday after economic data yesterday. Today it is supported by the notion of an economic recovery in the United States. However, the private employment report has come out with a lower number than expected.
On the other hand, the EUR/USD is operating under pressure due to the dollar’s strength. Besides, traders have seen the profit-taking having sold the rally when reaching 1.2000.
During Wednesday’s session, Australia reported a 7 percent drop in its second-quarter gross domestic product. This is a drop more massive than the market’s 6 percent.
In Germany, retail sales fell at a rate of 0.9 percent between June and July, against the market’s 0.5 percent increase. However, in annual terms, German retail sales fell 3.3 percent in July, slightly less than the 3.4 percent drop, expected by the market.
In the United States, the ADP private-sector employment report shows that 428,000 new private jobs had been created in August. This number is well below the 950 thousand jobs, which is what the market was expecting.
Experts are now awaiting the US employment report and its famous non-farm payroll component release on Friday.
Dollar bounces off 91.75
The dollar has reacted positively to economic data on Tuesday and Wednesday and is rebounding strongly from Tuesday’s lows of 91.75. The currency is back to 92.50 and operating at levels as high as 92.75.
The DXY price is at 92.72, which is a 0.44 percent advance so far in this session.
Although the ADP report has been lower than expected, the employment report on Friday may be a catalyst for the greenback’s definitive recovery.
The dollar is likely to continue its downtrend in the long term.
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