Forex Flash: ADP employment report is key - BTMU

Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ believes that e one of the key factors for the dollar performing well is the open-ended nature of QE3 and its linkage to incoming economic data that has been better than data elsewhere

He writes, “With that in mind, the ADP employment report is important. The 6-mth average in H2 2012 for ADP jobs growth was 145k while the 3-mth average is now up to 184k and with the initial claims data close to a cyclical low, there is every reason to be optimistic that the jobs data today and Friday will bring further good news that helps reduce QE3 expectations and support the dollar.”