Howdy guys! I'm back!!
To start it off, yesterday's ADP number slumped to 38K, the smallest monthly ADP job increase in four years and below expectations. ADP has been notoriously missed to predict the actual NFP release, but hey, it's worth taken into consideration. Today, we have the ECB interest rate announcement. There are three possible outcomes:
1- The ECB raises rates to 4.25 percent --> Would be extremely positive for the Euro, 1.3700 is insight.
2- The ECB leaves rates unchanged --> Plus some other dovish comments from Trichet would be extremely bearish for the euro, taking it back below 1.3550.
3- The ECB leaves interest rates ---> Hawkish comments from Trichet signalling further hikes. In this case, the reaction in the euro should be limited.
Today's Pivot Points:
R2 = 1.3732
R1 = 1.3688
PP = 1.3627
S1 = 1.3583
S2 = 1.3522
Today's Calendar:
1- ECB IR Announcement 7.45 pm
2- Trichet Speaks 8.30 pm
3- US ISM Non-Manufacturing Index 10.00 pm
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