US Dollar sees markets ignore upbeat ADP number
NEW YORK (April 2) The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, consolidates and hovers near 104.00 at the time of writing on Wednesday. The Greenback remains sidelined just hours before United States (US) President Donald Trump announces the reciprocal tariff implementation at the White House at 20:00 GMT. The White House and the Trump administration are very sketchy in details, and until now, it remains unclear what the tariffs will mean for markets.
On the economic data releases, this Wednesday’s main event was the Automatic Data Processing (ADP) private sector employment data. As per usual in the Nonfarm Payrolls (NFP) week, the ADP number precedes the official NFP number from the Bureau of Labor Statistics (BLS). Although there is no real correlation between the NFP and the ADP numbers for the private sector, this Wednesday's upbeat numer sets the tone for expectations for Friday.
Daily digest market movers: ADP above expectations
- The ADP Employment Change data for March jumped to 155,000, beating the 105,000 expectation in new employment compared to 77,000 in February.
- At 14:00 GMT, the February Factory Orders data will be released. Expectations are for a softer increase of 0.5% compared to the previous 1.7% seen in January.
- At 20:00 GMT, the main event for this Wednesday, US President Donald Trump will announce wide-ranging tariffs in an event he named "Liberation Day." The moves could significantly affect global trade and financial assets.
- Equities turn blood red ahead of the US trading session. Both European and US equity incides are all down over 1% on the day.
- According to the CME Fedwatch Tool, the probability of interest rates remaining at the current range of 4.25%-4.50% in May’s meeting is 85.5%. For June’s meeting, the odds for borrowing costs being lower stand at 74.4%.
- The US 10-year yield trades around 4.13%, a fresh monthly low as bonds are bid as safe haven resort.
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