Tuesday in many respects was a replay of the previous session as the USD continued to remain under pressure against the EUR and GBP. The JPY in the meantime also continued its steady pace and stayed at the stronger side of its trend. The ISM Non Manufacturing PMI was released from the States and it came in better than expected with an outcome of 53.3, beating the estimate of 52.1. However, this did little to stop the constant rhetoric from various officials, this time Charles Evans, the Chicago Fed President, was quoted as saying the Federal Reserve must continue to try and stimulate the American economy with ‘easing’. Today the jobless parade data begins in earnest with the ADP Non Farm Employment Change statistics and it is expecting an improvement compared to the previous report.
The USD finds itself get knocked around within winds that are being generated amidst a storm of debate among senior public officials and well known international investors such as Warren Buffet and George Soros as they all give their various opinions and interpretations regarding the predicament of the global economy. It has become a debate between those who believe stimulus is needed through spending (including quantitative easing) and those who believe governments ought to tighten their collective belts and spend less. The U.S. continues to show clear signs of struggling and this week’s jobless numbers will be put under the microscope in order to judge the state of the economy again. However, it is widely believed the jobless figures will be less than inspiring and investors are concerned about this and the knock on effects of consumer spending. Wall Street it should be pointed out actually turned in a positive day yesterday, showing that divergence in the broad markets continues and that volatility is likely not to go away anytime soon.
Written by bforex.com