US ADP Data Becomes the Focus, Where Does the USD Go? - Kakiforex.com - Financial Market Media No. 1 in the World US ADP Data Becomes the Focus, Where Does the USD Go? US ADP Data Becomes the Focus, Where Does the USD Go?
InstaForex

June 30, 2021

US ADP Data Becomes the Focus, Where Does the USD Go?

 The US dollar continued to strengthen towards the end of June trading, and was on track for its biggest monthly gain since March after rising about 2.5% against its major rivals this month.


The rise was supported by Federal Reserve (Fed) signals at its mid -June policy meeting, which expected a faster -than -expected tightening of monetary policy.


Meanwhile, current market sentiment, which is worried about the sharp surge in coronavirus cases in Asia and Europe, also supported trading of the US dollar as a safe-haven, in addition to the yen.



These concerns have caused most major currencies to fall lower during the European session, particularly commodity -linked currencies.


The euro continued to trade weak despite preliminary readings of European inflation data for June meeting expectations to rise to 1.9%, slightly down from the previous figure of 2.0%.


While awaiting the release of the employment report on Friday, investors will first look at the release of ADP employment data tonight as an indication of the US NFP reading.


The ADP private sector jobs report is expected to show an increase of 600,000 in June, lower than that reported in May which saw an increase of nearly 1 million jobs.