USD Gets Boost From Strong ADP Report
The euro rose against the US dollar earlier today, but then resumed its decline. Also, the single currency was pressured by weak data on retail sales and business activity in the Eurozone private sector. Eurozone PMI services was finalized at 54.7 in September, unrevised, up from August’s 54.4. PMI composite was finalized at 54.1, down from August’s 54.4. Eurozone retail sales dropped by 0.2% mom in August versus expectation of 0.2% mom rise.
The US dollar regains ground and is trading as the strongest for today after ADP employment data. As it was reported today, US private sector employers added 230.000 jobs in September, well above economists' expectations of 187.000 jobs growth. Private sector payrolls increased by an upwardly revised 168.000 in the previous month.
The British pound remains relatively steady, despite weak services PMI. Today’s data showed, that UK PMI services dropped to 53.9 in September, down from 54.3 and matched expectations.
Initially, the Italian government planned to have budget deficit target at 2.4% of GDP in the three years from 2019. But according to new reports, the plan now is to keep 2.4% in 2019, but lower to 2.2% in 2020 and then 2% in 2021. Italy Economy Minister Giovanni Tria said today that the while the budget deficit will increase compared with previous forecast in 2019, “there will be a gradual reduction in the following years”.
Chicago Federal Reserve Bank President Charles Evans stated today, that the Fed should continue to increase interest rates, considering the facts, that the US economy is stable and inflation is near the Federal Reserve's 2-percent goal.