Eyes turn on Service sector
With betting on more reopening, the market collapsed in many areas and rose in many others. ADP`s jobs figures and the ISM Services PMI will be in the spotlight today. Commodities are on the rise while cryptocurrencies are stable.
In the FX market, DXY gained momentum as Mrs. Yellen started the Howkish tone in the market, talking about the likely need to raise interest rates. Treasury Secretary Janet Yellen said, to control inflation, interest rates can be increased if needed. This comment caused the free fall in stock markets; even if later, she corrected the words by saying that she respected the Bank`s independence, and the comment was just a thought.
After a very light calendar of Tuesday, today we have the busiest calendar day. So far today, we have had Employment data from New Zealand. The unemployment rate of New Zealand fell to 4.7% to support the Kiwi to gain of 0.3% against USD and eased the Yen and Swiss Franc as a better economy will cause less demand for Safe-Havens.
Later today, we will have the PMI data from the European countries and the US, and then ADP numbers and EIA report for Oil inventory level.
As we are entering to warmer season and vaccination progress going well in the US, UK, Europe, and China, most of them either opened the borders for tourists or preparing for that. That`s why we are waiting for the upbeat Service sector to recover much better than previous months and get closer to the Manufacturing industry, which has already been rising. It will help the composite numbers to grow. ADP`s private-sector labor market numbers are also expected to increase 872,000 in April, which means 517,000 positions more than the March report.
USD Index used the momentum and got the advantage of market fears to regain most parts of last days` loss. Currently trading above the pivot point of 91.17. Following targets for USDIDX sits at 91.41 as first resistance and today high, then the second resistance at 91.60, which breathing above that, can open the doors for the third resistance at 91.85
Euro was under pressure and fell under 1.20 level. Currently, it is trading at 1.1990, and the next steps sit on 1.1960 and 1.1920 as S2 and S3, as long as it is selling under pivot point of 1.2027.