June 4: American session
Tatiana Norkina, FBS analyst
Mixed statistics from the U.S. makes market participants cautious. Thus, preliminary ADP data on employment in non-agricultural sector totaled only 179 thousand, instead of the expected by analysts 210 thousand. This led to a drop in the dollar index to a level of 80.0. However, the index of business activity in the service sector ISM steadily grown to 56.3 (forecast growth - 55.5). This allowed to strengthen the dollar a little, which now adds about 0.10 %.
At the same time, stock markets opened lower. The DJIA lost 0.18% and the S&P500 - 0.05%.
Euro remains under pressure. After the formation of the daily high at 1.3638 area, the currency pair EUR/USD comes back to 1.3610. The pair GBP/USD has recovered to 1.6760 resistance, but the bulls cannot pass this level and the reduction is going down in the 1.6740 area. USD/CHF pair is trading at 0.8860/0.8850 yesterday’s minimums. But the bulls did not give up and restore the course to around 0.8970 mark. The currency pair USD/JPY entrenched over 102.50 and is trying to resume recovery.