Today we saw the USD hit quite bad with the Pending Home Sales indicator -12.2%, worst than expectation. With the coming NFP this Friday, which will be expected lower than expectation, Fed will have to decide to cut rates.
Soon, we will see USD tumbled against major currencies.
Here is some insight of what will coming up next. Taken from actionforex.com.
Mid-Day Report: ADP Suggests Weak NFP, BoC on Hold http://www.actionforex.com/images/M_...rintButton.png http://www.actionforex.com/images/M_...mailButton.png Action Insight | Written by ActionForex.com | Sep 05 07 13:32 GMT | Forex Mid-Day Technical Report
ADP Suggests Weak NFP, BoC on Hold
US ADP employment report came much lower than expectation and showed 38k jobs growth in Aug only, hitting a four year low. Adding around 20k deviation, the ADP report suggest that Friday's NFP could be in the 60k region, which will be the lowest job growth since Oct 05. Also, the Challenger report showed that US companies cut more than 79k jobs in Aug, highest number since Feb. Financial services accounted for nearly half of the August cuts, primarily due to cutbacks at mortgage lenders, especially subprime lenders.
Fed's Beige book will be the next focus of the day. Bernanke mentioned in Jackson hole that he and the rest of the committee “will pay particularly close attention to the timeliest indicators”. Today's Fed Beige Book which covers the second half of July and most of August, will likely be the most anticipated in recent months. Summary of economic conditions in each of the 12 Fed districts will be reported and serve as the basis of discussion in next FOMC meeting.
BoC left rates unchanged at 4.50% today as widely expected. The accompanying statement is balanced between risk to inflation and growth and suggest that BoC will adopt a wait-and-see attitude on next policy move. Even though Services PMI from UK was well above expectation, Sterling, along with Euro, remain pressured against dollar and yen into US session.
Soon, we will see USD tumbled against major currencies.
Here is some insight of what will coming up next. Taken from actionforex.com.
Mid-Day Report: ADP Suggests Weak NFP, BoC on Hold http://www.actionforex.com/images/M_...rintButton.png http://www.actionforex.com/images/M_...mailButton.png Action Insight | Written by ActionForex.com | Sep 05 07 13:32 GMT | Forex Mid-Day Technical Report
ADP Suggests Weak NFP, BoC on Hold
US ADP employment report came much lower than expectation and showed 38k jobs growth in Aug only, hitting a four year low. Adding around 20k deviation, the ADP report suggest that Friday's NFP could be in the 60k region, which will be the lowest job growth since Oct 05. Also, the Challenger report showed that US companies cut more than 79k jobs in Aug, highest number since Feb. Financial services accounted for nearly half of the August cuts, primarily due to cutbacks at mortgage lenders, especially subprime lenders.
Fed's Beige book will be the next focus of the day. Bernanke mentioned in Jackson hole that he and the rest of the committee “will pay particularly close attention to the timeliest indicators”. Today's Fed Beige Book which covers the second half of July and most of August, will likely be the most anticipated in recent months. Summary of economic conditions in each of the 12 Fed districts will be reported and serve as the basis of discussion in next FOMC meeting.
BoC left rates unchanged at 4.50% today as widely expected. The accompanying statement is balanced between risk to inflation and growth and suggest that BoC will adopt a wait-and-see attitude on next policy move. Even though Services PMI from UK was well above expectation, Sterling, along with Euro, remain pressured against dollar and yen into US session.