US Dollar Slightly Boosted by ADP Report, Global Stocks Under Pressure

Market Reviews

US-China trade war is the main theme on the markets. China hit back quickly against the Trump administration's plans to slap tariffs on $50 billion in Chinese goods, retaliating with a list of similar duties on key US imports including soybeans, planes, cars, beef and chemicals. The global stock markets were rocked by China’s immediate response of its own retaliation measures against the US. Hong Kong’s HSI index fell by 2.19%. The DAX is being the worst victim as it’s losing 1.2%. FTSE is down just 0.36%, partly thanks to Sterling’s weakness.

The greenback is slightly boosted by better than expected employment data. The ADP report showed, that the US private employers added 241.000 jobs in March, above economists' expectations. Economists had expected the ADP nonfarm payrolls report to show a gain of 208.000 jobs. Private sector jobs increased by 235.000 in February.

The euro was supported by strong data on inflation and the unemployment rate in the euro area, but the main driver for world markets continues to be the escalation of the trade conflict between the US and China. Eurozone inflation was 1.4% year-on-year in March, in line with market expectations and up from 1.1% in February. Core CPI was at 1.1%. Eurostat also reported, that unemployment in the Eurozone fell to a nine-year low of 8.5% in February, from 8.6% in January.

The British pound is down on weak data on the construction sector in the UK, with the GBP/USD pair reaching its lowest level since March 30. Activity in the UK construction sector slowed last month. Research firm Markit said its construction purchasing managers’ index rose to 47.0 in March, compared to forecasts for a reading of 50. The prior month’s reading was 51.4.