- Euro and Pound Both Trade Higher
- Key US Figures Including PMIs and Payroll
- Wall Street Resilient Despite China Concerns
The Euro and GBP forex market against the Dollar both picked up some momentum yesterday and into the European trading session today as USD weakness continued with several important pieces of data due this week. These include the ADP non-farm payroll numbers as well as ISM Services PMIs and speeches from the Fed. All of these could be potentially market-moving events based on the outcome. Meanwhile, on Wall Street, the S&P 500 managed to notch another record as US stocks fail to get dragged down by the ongoing questions around Chinese names.
Strong Signs From Euro and Pound
The Euro and Pound have both managed to take advantage of some Dollar weakness so far this week. Despite several concerns around COVID-19 cases in China making a reappearance, the Dollar has continued to remain lower with those in forex trading to the advantage of the Euro. A settling of virus cases in the bloc has also come at the right time for the Euro as it moves back close to 1.19.
It has been a similar story for Sterling. The number of coronavirus cases in the UK has continued to decline. This despite a largescale reopening that it would appeal has had little impact on the case numbers. This positive news has led many to speculate that the Bank of England may move to raise interest rates. Forex brokers and traders alike await this decision.
US Data to Play Central Role
The other key factor weighing on the Greenback and providing some room for other major currencies to advance is the upcoming data releases in the US. This includes ADP non-farm payroll numbers and ISM Services PMIs. Both are important numbers in determining how quickly the economy is continuing to get back to work, and can provide some insight on the ongoing inflation issue.
Treasury Secretary Janet Yellen is also set to speak today in support of the infrastructure bill and total of $3.5 trillion in spending plans that the government has in store. She will remark that such spending is required to maintain the US place at the top of the world order in terms of economic prowess. Democrats are generally hoping to gain public support for this spending plan.
Records Continue as Wall Street Pushes Forward
Renewed concern in China as COVID-19 cases reemerged seems not to have been felt so far this week on Wall Street. Amid a broadly impressive earnings season with few shocks, the S&P 500 moved to close yesterday at a new record high.
The key driver today will be the US data releases and how the market reacts to Yellen’s speech on spending. More important names, particularly in travel and hospitality are also due to report quarterly earnings today including MGM and Booking with expectations creeping up in the sector as more get back to travel.