Currency weakens under technical resistance zone
The US Dollar (USD) remains under pressure as Treasury yields ease and United States equity futures tread water, with today’s ADP and October JOLTS reports providing a crucial read on labor demand ahead of the upcoming Federal Reserve meeting, BBH FX analysts report.
“USD is holding below its 200-day moving average, 10-year Treasury yields eased back a little after testing the top-end of its 3.95%-4.20% range in place since September, and United States equity futures are treading water.”
“The United States ADP weekly employment preliminary estimate is due today. The last weekly report from November 25 showed that for the four weeks ending November 8 private employers shed an average of -13.5k jobs a week while the November ADP jobs print was -32k.”
“The United States October JOLTS report will be a bigger job check ahead of Fed showtime. Further declines in the hiring rate, quit rate and vacancy-to-unemployed ratio would add to signs of worsening labor demand. If so, the Fed funds futures curve will likely adjust lower against USD.”