The USD has been on a bullish trend since early this year and it continues to show resilience, as dips keep getting bought by buyers. The DXY dollar i
The USD has been on a bullish trend since early this year and it continues to show resilience, as dips keep getting bought by buyers. The DXY dollar index trades close to 110 points and the pressure remains to the upside, so there’s more room for the USD to climb higher.
USD Index DXY Daily Chart – The Trend Remains Bullish
Moving averages continue to act as support at the bottom
Earlier today we saw a bearish move in EUR/USD, falling below parity again, but we saw a jump after the US ADP employment report was released, which came in pretty weak. Although, USD buyers came back pretty quickly, indicating strong buying pressure for the USD.
The Revamped ADP Jobs Report
- ADP June US employment 132K vs 288K expected
- Prior ADP employment was +128K
This is the revamped version of the report on private employment from ADP. The new philosophy of the report is that it’s less designed to predict non-farm payrolls and more designed to offer a view on the US jobs market. That’s a bit of an admission of defeat but the pandemic and subsequent seasonal adjustments threw both reports into disarray.
In any case, the past two ADP numbers have been in the sort-of sweet spot. Not soft enough to spur recession fears but not strong enough to ramp up worries about wage inflation.
EUR/USD
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