All Eyes on U.S. ADP National Employment Report

All Eyes on U.S. ADP National Employment Report

05.05.2021

Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by falling stock prices, a flat U.S. dollar, and lower interest rates. Meanwhile, the VIX (fear index) has risen to 19.4, and crude oil prices have climbed to the $66.40 range. In an interview with U.S. Treasury Secretary Yellen released yesterday, she expressed the view that “interest rates are likely to rise,” which the market took negatively.

In the foreign exchange market, the USD/JPY pair fell slightly during today’s Asian trading session and is currently hovering around 109.2. However, since it remains above the 20-day moving average on the daily chart, one should not anticipate an excessive decline. While yen crosses are showing a slight downward trend, Oceania currencies appear to be holding up well. The AUD/JPY pair is currently trading around 84.5, biding its time for another upward move.

Today’s schedule includes the French Services PMI (final reading) at 4:50 PM, the German Services PMI (final reading) at 4:55 PM, the Eurozone Producer Price Index at 6:00 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, the U.S. ADP National Employment Report at 9:15 PM, and U.S. Federal Reserve Bank of Chicago President Evans’ remarks at 10:30 PM:Chicago Fed President Evans’ remarks, 10:45 PM US Services PMI (final reading), 11:00 PM US ISM Non-Manufacturing PMI, 11:30 PM US Weekly Crude Oil Inventories, and 4:00 AM US Evans: Chicago Fed President’s remarks. I plan to closely monitor price movements while paying attention to the release of US economic indicators.