The US dollar is falling after this morning’s job report from ADP showed employers creating 147,000 new jobs during October, which was below analyst expectations of 165,000 for the month. The greenback is also under pressure as Republican presidential nominee Donald Trump gains in the polls, which is creating some market uncertainty around the presidential election’s outcome. The Federal Reserve’s meeting and interest rate decision is due early this afternoon, though investors don’t expect the Fed to raise interest rates until December’s meeting.
Overseas, the euro is rising against a weaker dollar after this morning’s non-monetary policy ECB meeting and strong manufacturing reports out of Spain, France, Germany, and the broader Eurozone. Tomorrow we’ll see unemployment rates out of Italy, Spain, and the broader region.
The pound is rallying as the UK’s construction sector activity grew more than expected last month, though housing prices didn’t grow as fast as hoped. Tomorrow morning will cap off the week data-wise for the UK, after presenting October’s services sector activity results, the inflation report hearings, and the all-important Bank of England (BoE) interest rate decision. While analysts expect the BoE to hold interest rates steady at the meeting, a surprise interest rate cut or even hints that BoE members would like to cut rates in the near future could further weaken the pound.
Farther east, the Australian dollar is rallying against a weaker greenback as investors wait for AiG’s business confidence survey from September and trade balance results out tonight. The Japanese yen is strengthening as investors move toward the traditional “safe-haven” currency, possibly to protect their positions amidst the US election uncertainty. The Canadian dollar is climbing against a weaker US dollar despite dipping oil prices.
EURUSD: The euro is climbing after this morning’s strong manufacturing readings from countries across the Eurozone.
GBPUSD: The pound is also up thanks to stronger-than-expected construction sector production.
AUDUSD: The Aussie dollar is up as investors wait for tonight’s business confidence survey from AiG.
USDCAD: The Canadian dollar is rallying against a falling US dollar despite lower oil prices.