A review before today analysis coming up:
Thanks to a couple of upbeat reports, the dollar had a few blows at all major pairs. It snatched 15 pips away from the euro to take EUR/USD to 1.2903, while stealing 40 pips away from the yen to carry USD/JPY up to 78.52.
The first wave of the dollar's rally came after the ADP non-farm employment report delivered an upside surprise. Jobs grew by 162,000 last month, beating forecasts which called for an increase of just 145,000. Although this figure is higher than expected, it's also a big downgrade from the previous month's gains of 189,000.
Afterwards, the ISM non-manufacturing PMI came out with a reading of 55.1 versus the 53.2 consensus forecast. The services industry expanded the most in 6 months in September, as business activity picked up thanks to improved consumer confidence.
Today, we'll have a bit of over yesterday's reports since we only have tier 2 data on tap. At 12:30 pm GMT, initial jobless claims data will be available. Look for the report to show an increase from 359,000 to 371,000. After that, we'll take a look at factory orders, which is expected to post a 6.0% decline for the month of August, following July's 2.8% uptick.
Last but not least, we have the FOMC meeting minutes scheduled for release at 6:00 pm GMT. The markets will be watching this like a hawk since it covers the Fed's recent QE3 announcement.
Thanks to a couple of upbeat reports, the dollar had a few blows at all major pairs. It snatched 15 pips away from the euro to take EUR/USD to 1.2903, while stealing 40 pips away from the yen to carry USD/JPY up to 78.52.
The first wave of the dollar's rally came after the ADP non-farm employment report delivered an upside surprise. Jobs grew by 162,000 last month, beating forecasts which called for an increase of just 145,000. Although this figure is higher than expected, it's also a big downgrade from the previous month's gains of 189,000.
Afterwards, the ISM non-manufacturing PMI came out with a reading of 55.1 versus the 53.2 consensus forecast. The services industry expanded the most in 6 months in September, as business activity picked up thanks to improved consumer confidence.
Today, we'll have a bit of over yesterday's reports since we only have tier 2 data on tap. At 12:30 pm GMT, initial jobless claims data will be available. Look for the report to show an increase from 359,000 to 371,000. After that, we'll take a look at factory orders, which is expected to post a 6.0% decline for the month of August, following July's 2.8% uptick.
Last but not least, we have the FOMC meeting minutes scheduled for release at 6:00 pm GMT. The markets will be watching this like a hawk since it covers the Fed's recent QE3 announcement.
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