US indices are dropping again this morning after the wind was taken from their sails as ADP payrolls indicated the US job market hasn’t been quite as rosy as people had thought. May payrolls increased by 179K while April payrolls were revised down to 215K from 220K and March payrolls were revised down to 198K from 209K. This means instead of going for three 200K plus months in a row, the US was only able to put up one lately with two near-misses.
USD has been dropping through the morning, while gold has rebounded a bit in response. EUR has been steadily climbing as Eurozone GDP and producer prices came in as expected. Service PMI numbers were mixed with Eurozone countries coming in a bit soft while the UK and Sweden beat the street. Swedish industrial production also beat expectations.
CAD is underperforming other majors today ahead of this morning’s Bank of Canada decision at 10:00 am ET. Although no changes are expected, trading suggests many are expecting a dovish statement from the central bank. Governor Poloz has stated in the past that he believes FX markets usually get currency levels correct, some may be speculating that he may try to talk down the rebounding loonie as his counterparts in Australia and New Zealand have done with their own Dollars lately.
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