US employment figures provide an irreplaceable insight into the condition of the world’s largest economy. It’s considered a leading indicator of consumer spending, which drives the economy.
The US dollar index (DXY) continued to flex its financial muscle Wednesday, strengthened on the back of upbeat data across the board. According to Automatic Data Processing (ADP), private-sector employment increased by 291,000 from December to January, on a seasonally adjusted basis.
The euro sustained a steady depreciation vs. the US dollar Tuesday, extending Monday’s slide from just south of the 1.11 handle on the H4 timeframe. The US dollar index, or DXY, firmed, albeit off its intraday highs of 98.01.
The broad dollar index (DXY) observed strong bidding Monday, largely on sterling’s demise, in which the index settled just south of 98.00. Also bolstering the USD was an overall solid ISM Manufacturing PMI reading.
Friday’s mixed Eurozone data, released in early European hours, was largely overlooked. EUR/USD bulls strengthened their grip on the back of a softer buck. The spread of the coronavirus continues to dominate market sentiment. Downgrades to the Fed’s assessment of private consumption and inflation target also contributed to the US dollar index (DXY) selling.
