EUR/USD Exchange Rate Dips as US Employment Change Figures Impress Markets
(Updated 14:30, 30/6/21) The Euro to US Dollar (EUR/USD) exchange rate is trading at around $1.1877 following the release of the latest ADP employment change figures.
The ADP employment change data from the US has shown the economy added 692k jobs during June, beating market forecasts of 600k.
A lack of impressive data from the Eurozone has left the Euro open to further losses against the ‘Greenback’ this afternoon.
Original article continues below:
Euro US Dollar Exchange Rate Rangebound as Markets Await US ADP Employment Change
The Euro US Dollar exchange rate is rangebound this morning as markets await the latest ADP employment change data from the US.
At the time of writing the EUR/USD pairing are trending around the $1.1893 level as the Euro finds support from the latest German unemployment change figures released earlier this morning.
Euro (EUR) Supported by German Unemployment Change Data
The Euro has found itself supported this morning as German unemployment change data fell more than forecast.
Markets had predicted a 20k drop in unemployment during June whilst the actual figure came in at 38k, almost double, pointing towards a sustained economic recovery.
However, limiting any meaningful gains for the single currency today is the ever strengthening US Dollar.
The latest flash Eurozone CPI figures matched market expectations and did little to provide any fresh impetus to the single currency.
US Dollar (USD) Investors Await US Employment Change
The US Dollar (USD) has been mostly rangebound since markets opened as a souring market mood continues to support the ‘Greenback.’
As the delta variant of coronavirus becomes more prevalent across the globe and Chinese’s PMI figures begin to soften, showing a slowdown in the world’s second largest economy, demand for the safe-haven US Dollar has risen.
All eyes for US Dollar traders however firmly rest on this afternoon’s ADP employment change figures from the US.
Analysts at ING commented on the upcoming data this afternoon, saying:
‘On the former, today sees the release of the June ADP employment numbers, where a 600k increase is expected. Last month, a 978k increase did not prove a particularly accurate predictor for the NFP figure (+559k), but we suspect the market will be on edge over any strength in the US labour market which would encourage Fed hawkishness.’
Euro US Dollar Exchange Rate Outlook: Manufacturing PMI’s in Focus
For Euro investors, tomorrow’s German retail sales figures along with the most recent Markit manufacturing PMI from the Eurozone could drive movement in the currency.
US Dollar traders will themselves be looking towards the ISM manufacturing PMI from the US and initial US jobless claims. If claims continue to fall the US Dollar could see itself heading higher.
The EUR/USD exchange rate will continue to be driven by the global market mood in the coming days as markets remain jittery over a rise in global coronavirus cases.