Wed, 01 Jul 2009 10:25:06 +0200

Daily Forex Overview - Adp Non-farm Employment Change To Rock Today’s Market!

Wednesdays typically act as the day with the most trading volume and volatility, and with events such as the US’s ADP Non-Farm Employment Change report being released just prior to the US market open, we will no doubt see a very intense trading session for all USD pairs and crosses, as well as dollar-based commodities (Gold, Crude Oil, Silver). The technical charts for the USD this morning are showing a lot of pressure mounting towards volatile price jumps, which will likely occur just after the ADP’s release at 12:15 GMT.

12:15 GMT – USD – ADP Non-Farm Employment Change
- This report shows the estimated change in the number of employed people in the US in all job sectors except the farming industry.

- It acts as a forecast for Thursday’s Non-Farm Employment report released by the Bureau of Labor Statistics.

- If this report shows that employment is on the rise, or simply shrinking less than forecast, the USD may see weakness as investors pull out of safe-havens and buy riskier assets

- If the report shows employment dropping more than expected, the USD may go on a strong bullish rally.

14:30 GMT – Crude Oil Inventories
- Measures the change in the number of barrels of oil held by commercial firms in the US

- This number has dropped by surprising amounts recently, leading to a rally in Crude Oil prices.

- If this decline continues, we could see more support for Crude Oil, with a target price around $76 a barrel

Gold Tips:
- As of yesterday, Gold’s flat range-trading pattern was finally broken by a sharp downward movement.

- Gold now floats in a new price range between $922 and $930.

- If this range is broken on either side, we could see some intense volatility as the breach will push prices to extremes.

Daily Forex Overview - Adp Non-farm Employment Change To Rock Today’s Market!

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