The dollar has an uneven performance against other major currencies within minutes of the beginning of the American session on Wednesday.
The jobs data released by Automatic Data Processing (ADP) for September pushed the index of new jobs creation to 162,000 new jobs, more than expected by analysts, but less strong upward revision to August.
The figure favors the dollar against the euro which backs up the day so far at 1.2938, although the crossing is maintained in a relatively narrow range of prices in recent days.
Moreover, the PMI Services in the UK was revised downward for September which influenced the sterling. The currency broke the 1.61 support in the early European session. Once overcoming 1.6060, it could further accelerate the decline of the British currency, which comes in a strong downtrend in the near term. This movement, in its turn, generates an increase in the EUR/GBP pair, as the single currency has remained, as it was said earlier, more stable against the dollar in the last hours.
The yen keeps dropping, which is not surprising. Numerous warnings from Japan were made about early intervention in the exchange rate if the currency does not change its course by supply and demand. The target of 80 per dollar does not appear any longer, although it is acknowledged that the decline in the last hours is mainly due to a contraction of investors’ confidence because of the atmosphere of uncertainty in Europe. The BoJ's monetary policy is about to be presented, and we expect a sharp fall of the yen at that time.
Meanwhile, the Australian dollar continues to fall after Australia's trade deficit exceeded the expectations of analysts. Australia is not going well in these months in the economic sphere. The interest rate was cut by the Reserve Bank of Australia, as it was expected.
We are expected monetary policy announcements from the ECB and BoE on Thursday. No changes await interest rate, which would be at 0.75% and 0.5%, historically low records for both entities. For now, the twists and turns of the Government of Spain in respect of the external debt; the market is full of doubt, they consider discussions as a waste of time while working indicators, construction and growth in Spain are deteriorating.
The ISM Service U.S. and oil inventories will be reported at 10:00 ET and 10:30 ET respectively. It may have impact on the major currencies.