If you were waiting to hear about USD – here is your lucky moment. But, is it lucky after all?
As you can see, ahead of two important reports and after yesterday’s statement of Trump about trade war and new tariffs, the greenback is not doing well at all. On the contrary – in the morning USD was looking a little bit down, but now we are really seeing how much value USD has lost against the basket of six major currencies. The declines started yesterday are only continuing and I am not seeing any reasons for them to reverse.
But. As I said, there are two important reports coming our way - ADP Non-Farm Employment Change and SM Non-Manufacturing PMI. The first one is showing us job creation pace as it is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. The second in its turn is a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
So, if these two are going to show us good numbers, there is a chance that USD can recover. But, there is also a chance that the downfall is much-much stronger and these reports are only going to kill any recovery.
In any case, we have to watch USD very carefully now. For this we have trading signals to help us.