Disappointing Job Report Weighs on Forex

A disappointing US ADP Data figure has just been released showing an increase in job losses of 169K against an expected 150k.

This adverse result has drawn criticism against the Obama administration for their policy of focusing on National Health Care as opposed to job creation. Difficult choice as both are so important.

In addition, this unexpected increase does not bode well for the future as many experts were predicting a significant improvement before further deterioration in the New Year.

In response, the EURUSD has retracted from its highs to its current 1.5070 (see chart). A consensus opinion that the EURO is over-valued has also restricted the single currency’s advancement.

Earlier this morning, European producer prices posted a yearly decline of 6.7% whilst monthly inflation rose by 0.2%. Consequently, the ECB is anticipated to hold its interest rate at the current level at tomorrow’s policy meeting.

There are further event risks today when the Treasury Secretary Timothy Geithner testifies in front of the Senate Agricultural Committee at 10.30am EST time whilst the release of the Fed’s Beige Book is due at 2.00pm EST.