- Summary:
- The USDJPY was higher after ADP employment figures beat analyst expectations with a gain of 749k jobs versus the 650k jobs expected.
The USDJPY was higher after ADP employment figures beat analyst expectations. The ADP number saw a gain of 749k jobs, compared to the 650k expected and this was a boost to the greenback ahead of Friday’s Non-Farm Payrolls number.
The U.S. dollar also saw a slightly higher revision to second quarter GDP with a 31.4% reading versus the -31.7% expected. Tomorrow will see further market-moving data with the PCE inflation number and ISM Manufacturing PMIs. If the economy sees higher inflation and strong manufacturing then the threat of Fed stimulus will be reduced and this will help the dollar shrug off a potential second stimulus package.
After weeks of stalemate, House Democrats brought the $2.2 trillion package back to the table and there are reports that Treasury Secretary Mnuchin will bring a counteroffer to negotiations. The package will likely have to be thinned out before it is accepted by Republicans.
The first Presidential debate between President Trump and Joe Biden brought no real clarity for the dollar in a head-to-head that the media has called “chaotic”. Prediction markets still have Biden ahead but there are two debates remaining, including one between the Vice-Presidential candidates, Pence and Harris.
USDJPY Technical Outlook
The USDJPY was pushing against the 50-day moving average and the pair will be looking for a driver from the upcoming data. A close above 106.00 will see the USD move to the resistance ahead of 107.00. If the price failed to get above the indicator then a pullback towards the 104.16 support is possible. The Investing Cube team is currently available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.
USDJPY Daily Chart
