Dollar prevails against Rivals while Markets remain anxious about NFP & ECB

Daily Update - 6th March 2019

Yesterday’s Market

• EUR Markit Services
• GBP Markit Services PMI & Bank of England Governor Speech
• US ISM Non-manufacturing PMI

Yesterday’s Explained

Euro Markit Services released by the Markit Economics indicated that Economic Conditions are improving in the Euro Zone services sector. GBP Markit Economics resulted positive. Bank of England officials state that they are prepping for the worst case scenario of a No-deal Brexit. US ISM Manufacturing PMI & New Home Sales resulted positive and better than expected pushing the dollar stronger than the Rivals yesterday.

Today’s Market

• US ADP Employment Change
• BOC Statement & Interest Rate Decision

Today’s Focus

For Euro, there are no material stats scheduled for release through the day. The lack of stats will leave the EUR in the hands of market risk sentiment and views on tomorrow’s ECP press conference. While economic data out of the Eurozone on Tuesday came in better than expected, downward pressure on the EUR remains in the event that growth in China and other major economies continue to weaken. With a lack of economic data, the EUR will also be more exposed to any political chatter through the day. The Italian coalition government is on the ropes and Spain’s snap general election is not too far off.

For the Pound, it’s also a quiet day on the economic data front. With a lack of data to distract the markets, the Brexit chatter will continue to be the key driver. The British Prime Minister is cutting it fine with her scheduled last-ditch trip to Brussels over the coming weekend. Reports of a lack of progress between EU and British negotiators weighed on the Pound in the early hours of this morning.

For USD, December trade figures and February’s ADP nonfarm employment change numbers are the key stats scheduled for release this afternoon. While there will be a degree of interest in the trade figures, purely because of the U.S President’s likely scrutiny over the numbers, the focus will be on the ADP numbers. Anything in line with or better than forecast should be enough for the Greenback, following yesterday’s service sector PMI numbers. Labour market conditions are going to need to remain robust to support any optimism towards the U.S economy near-term.

Outside of the numbers, U.S President Trump will need to be monitored along with any further updates on trade negotiations. FOMC members are also scheduled to speak through the day, with Mester and Williams on the docket.