USD Forex Rate Strengthens with ADP Report

More positive news for people interested in forex trading coming out of the United States with a report from the ADP showing that 22,000 private sector jobs were lost as opposed to a predicted and expected fall of 30,000. This follows the general trend in the US which shows job losses steadily falling and boosting both consumer and investor confidence.  Forex traders meanwhile are waiting for a more comprehensive non-farm payrolls data report from the government two days hence.

The US Dollar forex rates are currently fluctuating despite the encouraging report from ADP, this is partially because of the meek earnings results released by Pfizer and Merck, pharmaceutical giants both. The US Dollar is expected to maintain its current levels of forex trading rates or strengthen slightly after the government releases the non-farm payroll data report on the 5th of February.

Gold is a key part of forex currency trading and its price has been rising to record levels as people have traded in the weakening US dollar for the traditional “safe haven”. However with the forex rates of the US dollar once again strengthening it is likely that gold prices will steady. Furthermore with the possibility and rumors of a tighter US monetary policy floating about, it is even likely that gold prices might start falling as gold despite having stable values does not provide interest and will therefore be less attractive if a higher interest rate is implemented for the US dollar. This might lead to strengthening of US dollar forex trade rates.

Be Sociable, Share!

•