Following the latest ADP employment change gauge for the month of April, dollar lost against all of its major counterparts and dropped further, luring investors to trade due to higher volatility on all the major currency pairs.
Employment change showed an increase of 169,000 last month, following a revised 175,000 rise in March as figures from the ADP Research Institute in Roseland, New Jersey showed. Market will now turn its attention to non-farm payrolls data coming out on Friday and initial jobless claims to be published tomorrow for the previous week.
From the fundamental point of view we are still on a short-term bearish wave for the dollar spurred by the disappointment for the first quarter for the US economy, following a previous strengthening of the US currency. Although the rate-hike is presented as being on the table constantly from June’s meeting, we can not expect it to come in June, as even most of the Federal Reserve’s representatives claim it to be a strong hit for the economy. Q1 caused a postponement of the liftoff now for sure and we count of it later in 2015, firstly possibly to occur at September’s meeting, if not even later.
From the technical point of view, we can see TP levels for bulls at ¥120.278 and later at ¥121.369. For bears, reasonable level to put their TP for a quick position seems to be ¥118.806, ¥118.378 and later at ¥117.261.
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