Forexlive Americas FX news wrap: US dollar jumps on strong ADP and ISM services | Forexlive
Markets:
- WTI crude oil up 7-cents to $71.86
- US 10-year yields up 9.6 bps to 4.04%
- EUR leads, CAD lags
- Gold down $7 to $1909
- S&P 500 down 0.8%
The US economy continues to run hot. The ADP number was shockingly strong, setting up what could be a 15th consecutive beat on non-farm payrolls tomorrow. That was followed up by a strong ISM services index with some hints at inflation re-acceleration.
The bond market crumbled initially, with 2-year yields hitting 5.12%, which breaks the March high. That didn’t last though as they closed just under 5% in a sign that the market is either skeptical or cautious ahead of NFP and next week’s CPI data.
The dollar initially jumped but later gave back gains against the euro and pound as they showed some impressive fight-back. The commodity currencies weren’t so lucky as the offered meagre bounces in the 20-pip range and, in the case of CAD, nothing at all.
USD/CAD spiked up to 144.65 but quickly backed off a challenge of the figure and down to 144.11. It was at 143.65 before the ADP data.
Stocks were beaten up on the hot data on worries about hikes but there was some nibbling mid-day to mitigate the losses as the market struggles with the axis of a solid economy but further potential hikes.