ADP Figure Leads to Mild Gains for USD/JPY

The US dollar was able to advance close to 30 pips against the Japanese yen yesterday, as a better than expected US ADP Non-Farm Employment Change figure boosted investor confidence in the US economic recovery. That being said, the greenback saw relatively little movement against its other main currency rivals throughout the European session, as investors remained cautious about opening new positions ahead of policy statements out of the US and euro-zone. Against the Canadian dollar, the USD moved up close to 20 pips before correcting itself later in the day, virtually erasing its earlier gains. Today, a batch of potentially significant euro-zone news is set to create market volatility. Traders will want to note the results of a Spanish ten-year bond auction, as well as any new initiatives from the ECB to boost euro-zone growth. In addition, the US weekly Unemployment Claims figure could result in dollar losses if it comes in above the forecasted 375K. Finally, traders will not want to forget that the all-important US Non-Farm Payrolls figure will be announced on Friday. Any signs that the US economy is still struggling to add jobs could weigh down on the greenback before markets close for the week.

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