US ADP jobs miss badly (-33k vs +99k expected)

Important News for the day

• Thu, 03rd, 08:30 CET CH Consumer Price Index.

• Thu, 03rd, 14:30 CET US Nonfarm Employment Change.

• Thu, 03rd, 14:30 CET US ISM Services PMI.

US data disappoints

The ADP employment change data from the US revealed that 33k jobs have been eliminated from the economy. It was expected that 99k new jobs had been added, yet this figure was badly missed. Markets hence expect that this could be a sign that the Fed cut interest rates soon as the data has shown negative facts. Stock markets as a result used this negative news to rise and the positive sentiment is back in markets. Some US- Dollar weakness also supports such view and helps new demand for US stocks.

Market talk

The Dollar weakness helps the positive risk sentiment and most markets move higher. The EUR and AUD both gear up further momentum against the Greenback, while the JPY is losing slightly. Especially the strong support level based on the longterm monthly chart in this currency pair might give more clarity. If it breaks an escalated move lower might be the result. On another note crypto markets move higher as well. Supported by the stronger Nasdaq in particular BTC might be on track to create a new all- time- high soon. Several altcoins also follow the momentum now.

Tendencies in the markets

• Equities positive, USD potentially stronger, Bitcoin positive, ETH positive, oil weak, Silver sideways, Gold weaker, JPY stronger.