The USD languished most of Wednesday trading slightly to the weaker side of the major currencies. This occurred as the equity markets moved inconsistently in a rather mixed day with lackluster results. Both the Dow Jones and S&P continued to show rather poor volume. The ADP Non Farm Employment Change number was released and turned in a rather bleak figure of minus -298K compared to the estimate of minus -250K. While this data may not be the �tell all� for investors, it will not comfort them going into the government Jobless report on tomorrow. Today the weekly Unemployment Claims release is on schedule and is predicted to show a slight improvement.
Also published yesterday, were the Factory Orders numbers and it was under the forecast with a gain of 1.3% compared to the anticipated 2.3%. The unemployment data continues to build in importance today with the weekly Unemployment Claims and climaxing with the jobless data tomorrow. This will provide traders with plenty of impetus for the next two sessions, but the question is how many investors will be around to take part in the proceeding due to the Labor Day holiday this coming Monday. The results on Wall Street are a sign that many investors may be starting to be think about finishing off their last summer vacation before coming back to the grind. The USD did loss some ground on Wednesday, but it was in an unconvincing manner due to the mixed results that took place in the broad marketplace. Traders will have to watch the unemployment news and make their decisions knowing that the equity markets are already nervous.
EUR:
The EUR turned in a slightly better day on Wednesday gaining on the USD. The Revised GDP numbers for Europe turned in a figure of minus -0.1% meeting expectations. Today the European Central Bank will be releasing the results from their interest rate meeting and it is anticipated that they will keep their current key pegs on hold. What investors will be geared for is the press conference that President Trichet will hold after the announcement. Trichet is known for his rather direct manner and traders will be keen for any hints dropped by the ECB President about his outlook for the European economy and the future of the interest rates. With yesterday�s GDP figures showing that the recession in Europe is still underway, the question now becomes which direction it will take regarding stability and prospects for growth. The EUR managed to ebb higher yesterday, but all on eyes will be on President Trichet today and his precise words.
GBP:
Sterling managed to trader better on Wednesday but it did this under the shadow of another less than terrific economic report. The Construction PMI was released by the U.K. and turned in a result of 47.7 compared to the anticipated reading of 48.1. Today the Services PMI data is on the calendar and predicts a 53.9 figure, which would be an improvement on the previous number of 53.2. Considering that the week has thus far offered disappointing data from the U.K., investors will be eager to see what the results are from the Services PMI publication. The GBP has stumbled in recent trading even when considering yesterday�s positive trading. The Sterling has looked more vulnerable the past week and investors may have taken notice of this.
JPY:
The JPY continued to turn in a solid performance against the major currencies on Wednesday and it did this as international equities largely produced less than spectacular results. Gold found itself in a bull mode and climbed past the 975.00 USD mark. The trading in Gold has been quite interesting the past week and a half, having held onto its ground in a rather inconsistent marketplace. Gold has managed to make strong gains as other commodities such as Crude Oil have actually struggled. The JPY continues to spur the interest of investors as it trades near its highs against most of the major currencies.