Greenback is still surging today, gaining ground against its major counterparts. Even with a weaker than expected ADP report, and trepidation over tomorrow’s nonfarm payrolls report, the dollar is heading higher.
The latest ADP report indicates that job growth was weaker than expected in February. This isn’t great news for the US economy, but the greenback is heading higher anyway. Indeed, the dollar has hit an 11-year high against the euro, and is gaining against its other major counterparts as well.
With the disappointing ADP report, many expect an equally disappointing unemployment report tomorrow. However, even with signs that the US economic recovery might be slowing, the greenback is still doing well. Many thought that maybe the euro would receive some relief due evidence that the eurozone economy is on the mend, but so far that hasn’t happened.
Long-term, the US dollar is still expected to maintain overall strength, since even with evidence of economic improvement, there are still concerns about other major economies.
At 16:47 GMT the US dollar index is up to 96.3920 from the open at 95.0520. EUR/USD is lower, down to 1.1022 from the open at 1.1076. GBP/USD is also lower, down to 1.5226 from the open at 1.5263. USD/JPY is higher, gaining to 120.2040 from the open at 119.7120.
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