Strong Data Abroad Puts Dollar Under Pressure

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Strong Data Abroad Puts Dollar Under Pressure

JANUARY 06, 2020

The U.S. Dollar is under pressure this morning as data abroad has lifted its rivals.

Overview

The safe-haven currency got a boost on Friday following the killing of a top Iranian military official.  The “risk-off” sentiment continues across most asset classes with global stocks all in the red and the price of oil at multi-month highs.  Gold is at the highest level in seven years.

The economic data will get back in full swing this week.  Later this morning Markit Service data will cross the wire, followed by ISM Non-manufacturing data and durable goods tomorrow.  ADP private jobs data are due out Wednesday morning.  Non-farm payrolls on Friday represents the largest fundamental risk event of the week.

What to Watch Today…

  • No major events scheduled for today.

Complete Economic Calendar can be found here.

EUR

The Euro has jumped up in early trading versus the U.S. dollar.  The common currency’s strength comes after a report showed that service activity picked up at the end of last year, making up for awful manufacturing numbers.   IHS Markit service activity climbed to 50.9 in December, beating forecasts.  EUR/USD is now back to the level seen before the New Year holiday.

GBP

The British pound followed the Euro’s lead, gaining against the U.S. dollar after a report showed an improved service sector. IHS Markit registered a reading of 50, which is the breakeven point between expansion and contraction.  The reading was up from the flash reading of 49.0.  New orders rose at their fastest pace since July, adding wind to the sterling’s sails.

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