US Dollar continues strength in currency trading, ADP employment report rises. | CountingPips Forex & Currency Trading Blog

July 30, 2008 - Forex Economic News

US Dollar continues strength in currency trading, ADP employment report rises.

The U.S. dollar has still been riding high in the currency markets today, extending gains against most of its major currency counterparts for the second straight day. Providing a boost to the dollar today was an unexpected rise in employment numbers in the ADP job report and a fall in consumer confidence out of Europe. The U.S. currency extended its gains verses the European euro, Swiss franc, New Zealand dollar, Japanese yen and Australian dollar today with the dollar establishing new monthly highs against all except the yen.

USD gains in currency Trading Private employment rises. Eurozone confidence falls.

The ADP National Employment Report showed that private employment increased from June to July by 9,000 jobs. This follows the May to June revised loss of 77,000 jobs. The increase in July beat market forecasts that were expecting a decline of approximately 53,000 jobs. The service-providing sector provided a boost to the employment numbers with a gain of 74,000 jobs in July while the goods-producing sector showed a decline of 65,000 jobs. Manufacturing marked its 23rd straight month of employment decline with a loss of 49,000 jobs. Large businesses with more than 500 employees declined by 32,000 jobs and medium sized businesses fell by 9,000 jobs while small businesses produced a gain of 50,000 jobs in July.

News out of the eurozone showed that consumer confidence fell in July more than expected and the rate of decrease was the most since 2001. The European Commission report showed the eurozone economic sentiment fell 5.3 points to 89.5 in July following a revised score of 94.8 in June as decade-high inflation continues to cause economic distress in Europe. Market forecasts expected confidence to score approximately 93.0 for the month. Producer prices out of Italy were released in a separate report by ISTAT and showed an increase of 0.8 percent in June. This follows an increase of 1.5 percent in May and increased the year-over-year rate to 8.2 percent, up from 7.5 percent in May.

The Australian Bureau of Statistics released a report today that showed Australian building approvals declined in the month of June. Building approvals fell by 0.7 percent in June following a revised decrease of 7.2 percent in May. The year-over-year rate through June also fell with an annual decline of 7.8 percent following an annual rate decline of 0.4 percent in May. Market forecasts expected building approvals to increase by 1.0 percent in June and only register an annual decline of 4.1 percent. The Aussie dollar has been under pressure in forex trading as it has declined verses the U.S. dollar, Japanese yen and European euro since the beginning of the week.

EUR/USD Chart - The euro falling verses the dollar in forex trading for the second straight day, hourly chart. 7-30-08.

EUR/USD falling today in forex trading.

tags: us dollar, currency trading, currency markets, adp employment

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