What’s Next: USD falls after data, focus on NFP

FXStreet (Córdoba) - The dollar weakened slightly on Wednesday in the wake of disappointing ISM manufacturing and ADP employment data.

ADP data showed US private sector added 189,000 jobs in March, below the 225,000 expected. In addition, ISM manufacturing PMI declined for fifth month in a row to 51.5, its lowest since May 2013.

ADP report has been underperforming nonfarm payrolls over the last month. The US Government is expected to report a 244,000 job gain in March. Strong employment data has supported the view the Fed could begin raising rates in the June-September period, which has driven the USD to multi-year highs versus most competitors in March.

As for today price action, EUR/USD failed to break above the 1.0800 level despite USD weakness and spent most of the session oscillating in the 1.0715-1.0800 range. Greece submitted a new list of proposals to Eurozone authorities on Wednesday, but a deal is not expected before next Eurogroup meeting on Apr 24.

GBP/USD rose back above 1.4800 erasing intraday losses while USD/JPY continued to trade on both sides of 120.00 and was last down 0.29% at 119.75.

US stocks were weighed by disappointing data with all three main indexes down by 0.4% each.

Gold rose 2.2% to a session high of $1,208.46 an ounce, and ended the day around 1.7% higher above 1,204.00 According to Valeria Bednarik, chief analyst at FXStreet, the sudden recovery above the critical 1,200 level can be reverted with a strong US NFP next Friday, whilst a disappointing report can help the metal extend beyond 1,223.20, March monthly high.

West Texas Intermediate crude oil futures surged to an intraday high of $ 50.44 a barrel, despite the US EIA released its latest stockpiles report showing inventories rose by 4.8 million in the week ending March 27th.

Private sector added 189K jobs in March – ADP

US: ISM manufacturing PMI declines for fifth month in a row

Greece submits new proposal to Eurozone - FT