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Stellar US data helps USD bounce off its lows

Summary:

  • ADP and US GDP both come in well above consensus forecasts
  • Another large drop seen in weekly DOE oil inventories
  • EURUSD pulls back to 1.19 despite rise in Eurozone inflation 
  • IBM trades around 52 week lows

The US dollar has risen today after trading down to its lowest level since the start fo January during yesterday’s session. An impressive rise in personal consumption has boosted the latest GDP figures from the US with a 3.0% rise seen in the preliminary reading for the second quarter. With a prior reading of +2.6% and a consensus forecast for a rise of 2.7% there’s little doubt that this number is a clear positive for the US and, when taken in conjunction with the strong ADP beat could well come to the aide of the beleaguered US dollar.

A 9th successive drop in the weekly DOE inventory release failed to spark an immediate rally in the price of Oil.WTI, although there has been some gains noted around the European close. 

This Friday sees the August non-farm payrolls released and many traders and analysts see today’s ADP number as an important precursor. Along these lines the release of +237k vs +185k exp for ADP is a strong positive going into the more widely viewed labour market report, with an upwards revision to the prior thrown in for good measure (revision +201k vs +178k prior). 

The US500 has traded broadly flat since the cash open, with the market consolidating on Tuesday’s large gains. In terms of individual stocks IBM has fallen by around 7% today. IBM is one of the largest company listed on Wall Street. The IT giant has had difficult times of late - earnings have disappointed and a development of the cloud computing technology has trailed behind its major peers such as Microsoft and Amazon. 

 The latest hours have been exceptionally calm with regard to the major cryptocurrencies. Even as the price action has been dormant of late, it doesn’t mean that some larger moves could not occur in the nearest future. Ethereum could be the most exposed to a decline among its major peers as the technical view might suggest

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