Mar. 5: American session
Tatiana Norkina, analyst at FBS
According to ADP last month, preliminary data on employment in the non-agricultural sector of the U.S. economy were significantly lower than expected by analysts: 139 000 against 160 000. At the same time, according to the revised data, a change to 127 000 was registered the month before. Right after the statistics publication, U.S. stocks began to sink. But at the moment there is a turn in the opposite direction, to further growth. Thus, the S&P500 index has added about 0.15% and the DJIA has pulled to the Green Zone - 0.5%. The US dollar index is set to decline, returning to the level of 80.00.
Against this background, the pair EUR/USD is back to around 1.3750 today, after falling to 1.3710. The British currency has strengthened, supported by positive data on business activity in the service sector. The GBP/USD pair is trading at 1.6730.
The US dollar is weakening against the Swiss franc and the yen. USD/CHF fell to 0.8860 after testing the 0.8900 figure and USD/JPY decreased to 102.30 after making to today's maximun around 102.55.
A sharp volatility increase is observed for the USD/CAD pair, which plummeted to 1.1030 after yet another leap to 1.1100 - this is the new minimum in the past two weeks. The probability of decreasing to 1.1000 is very high.