ADP better than expected in the US

The U.S. dollar rose against the major forex 1 and the major forex 2. It was published data in the private sector outside agriculture. I opened 179000 jobs for people in July, more than expected. Official data showed that U.S. private sector opened 179000 new jobs in July after rising 176000 in June. Analysts predicted 170000. EUR/USD dropped to 1.11370. The US currency was stronger against the yen, pound and the Swiss franc. USD/JPY jump to 101.55. GBP/USD dropped to 1.32740 while USD/CHF rose to 0.97365. USD/CAD rose to 1.3090.AUD/USD fell to 0.7587 while NZD/USD was lower to 0.7175. Dollar index rose 0.20% to 95.21 index points. It can be seen all needed information by easymarkets.

The Euro fell against other major currencies. It was published the index of the service sector and in the euro zone rose in July. Analysts expected to remain unchanged. EUR / USD fell to 1.1198. The index of the service sector in the euro zone rose in July to 52.9 points from 52.7 in the previous month. Analysts predicted that it would remain unchanged. Against the pound and the yen, the euro fell but strengthened against the franc. EUR / GBP dropped to 0.8386, EUR / JPY fell to 113.30. EUR / CHF rose to 1.0843. The index of activity in the services sector in the UK, remained unchanged in July at 47.4. It was in line with forecasts of economists. The index of service sector activity in Japan rose in July to 50.4 points from 49.4 in the previous month. The European currency fell against the Canadian, Australian and New Zealand dollars. EUR / CAD fell to 1.4691. EUR / AUD dropped to 1.4757.  EUR / NZD fell to 1.5592. The index of the euro fell by 0.17% to 88.80. EUR/USD rose above 1.12. At the same time, the U.S. currency fell to the lowest level in five weeks compared to other currencies. The Bank of Japan introduced new measures to stimulate the financial activity because of the decreasing expectations that the Fed will raise interest rates. In the U.S. will be published a report on employment, not including the agriculture sector in the U.S. It traditionally has a strong influence on the movements of the dollar.  This time, can expect increased market volatility.

The Bank of England will be held meeting today. It is expected to bring a new reduction in interest rates from 0.5% to 0.25%. It would represent a new record low. After the decisions on leaving the EU, and the latest economic reports showing that the economy is in recession. Mark Carney Governor of the Bank of England has already announced the possibility of such a move. The governor will follow to support the implementation of ultra-lax monetary policy. The Finance Minister Philip Hammond said recently that it should not expect a change of fiscal policy before the new economic reports shows a more precise picture of the British economy.

The Bank of Japan announced a new package of financial incentives as part of efforts to encourage faster economic recovery. It should bring with them a rise in inflation. It should precipitate the value of the yen, the market is not too convinced. Australian Banks had joined in the global trend of the policy of cheap money. It was decided to reduce interest rates from 1.75% to 1.5%. However after an initial fall, the Australian dollar is trading in Asian trade but finished with an increase of 0.4%.

Meanwhile, the price of gold is held near a three weeks maximum. The anticipation of new monetary stimulus by the major central banks continues to maintain demand for the precious metal. The price of crude oil broke through the sychological barrier of $ 40 per barrel for the first time, since April this year has dropped below this level.  Global supplied the market increased production in the U.S. and the OPEC countries.  It prevents the recovery of prices and exerts a strong pressure that the price would remain very low for a longer period of time.

U.S. stock price have fallen. It was caused by falling sales of the largest U.S. car manufacturers.  The Dow Jones fell 0.50%, the S & P 500 dropped by 0.64%, while the NASDAQ fell by 0.90%. Disappointed showed that the U.S. economy did not record enough strong growth although personal spending rose more than expected while the growth of personal income was weaker than expected. Personal consumption in the US rose by 0.4% in July, compared to expectations for growth of 0.3%, after an increase of 0 .4% in May. Personal incomes rose by 0.2%, after rising 0.2 % in the previous month, and predicted growth of 0.3%. The largest decline in stock price was recorded in the automotive sector, after the largest U.S. automakers, General Motors and Ford posted a drop in sales in July. General Motors recorded a drop in sales of 2% to 267.258 vehicles, while Ford's sales dropped by 3% to 216.479 cars. It can conclude that there was a very bad week in the U.S. Asian stocks have fallen. Japan's Nikkei 225 index fell 0.86%, Hang Seng index in Hong Kong dropped by 1.79 %, while Australia's ASX/200 was down by 1.05%. Data in Japan showed that the index activity in the services sector rose in July to 50.4 points from 49.4 in the previous month. European stocks have fallen. Euro Stoxx 50 was down 0.45%. France's CAC 40 was down 0.66 %.  German's DAX 30 fell by 0.39%, while the FTSE 100 was lower by 0.14 %. Worse than expected data in the U.S., pushed downward, the European and the Asian stocks market.

Summary

EUR/USD is under pressure. GBP/USD the upside prevails with rising trend line. USD/JPY key resistance at 102.00.AUD/USD supported by rising trend line. The price of gold is under pressure capped by negative trend line. The price of crude oil further upside with bullish technical indicators.