The U.S. dollar moved in differing directions overnight, gaining versus the Euro, sterling and Japanese yen but falling against the Australian dollar.
Overview
News of a possible vaccine for the coronavirus has led global stocks higher. The World Health Organization will hold a press conference at 10:00 AM.
Last night, President Trump gave his annual State of the Union address and touted the strength of the economy as the hallmark reason he feels he deserves to be re-elected in November.
The dollar received extra support this morning after a report showed private job creation exploded in January. ADP reported that 291K people were added to payrolls in January, beating expectations of 157K. Markit Service PMI and ISM non-manufacturing will hit the wire at 9:45 and 10 AM, respectively.
What to Watch Today…
- Markit Service PMI at ISM Non-Manufacturing
Complete Economic Calendar can be found here.
AUD
The Australian dollar was once again higher this morning on reports of a possible breakthrough in creating a coronavirus vaccine sent risk higher and boosted the Aussie. After falling more than 4%, the Aussie is now at its strongest level since January 29th.
Pop in the price of oil is also boosting commodity-based currencies.
GBP
The British pound originally traded higher overnight after data showed that the nation’s service sector grew at the fastest pace in sixteen years.
However, the sterling’s fortunes quickly changed, and the currency tumbled on reports that the European Union is likely to be tough on London Banks. Bloomberg reports that officials in Berlin, Brussels, and Paris are looking “to amend the post-crisis financial rulebook known as MiFID II by walking away from concessions they made to the U.K. in the six years it took to complete the regulations.”
