The USD gained versus the EUR Tuesday as doubts continued to mount regarding the European Union’s ability to cope with their economic crisis. The fallout from the EUR centric negative sentiment and the added ‘fire’ thrown onto the oil by a rather poor CB Consumer Confidence reading in the States put Wall Street into a steep tailspin. The major equity markets which have shown nervousness the past week were essentially given a green light to sell off. While the S&P/CS Composite-20 HPI performed slightly better, there were reports surfacing that a large percentage of existing home sales in the U.S. are coming via foreclosed properties. Today the ADP Non Farm Employment Change numbers will be published, along with the Chicago PMI, and Crude Oil Inventories. Thus, today is the beginning of an important parade of jobless data.
Investors have proven that they are on a razor’s edge the past couple of months and yesterday’s results on Wall Street and its overall effect on international bourses was readily apparent for all. Global equities are now at values not seen in months and are hovering near important low level junctures. This has developed as economic data has been uninspiring and left investors with the belief that the recovery in the U.S. may not be as strong as anticipated and in fact may not materialize. The jobless numbers that will come out over these next three days will be watched carefully and investors are hungry to see actual gains coming from the private sector. Today’s ADP number is expected to show a gain of 59K jobs, tomorrow’s weekly Unemployment Claims is expected to nearly match the previous week’s report, leaving Friday’s official Non Farm figures heavily anticipated. Investors appear to be recognizing warning signs throughout the economic landscape and are exhibiting they do not like what they see. The USD has proven its muscle as a safe haven avenue and traders may feel drawn to it still.
Written by bforex.com