Euro Nears 1-Year Low, USD Strengthens After ADP Report

Market Reviews

The euro fell against the US dollar after the release of strong US ADP employment report. The single currency nears to the minimum of 2018. Today’s economic data from the Eurozone had no support to the euro. Eurozone CPI accelerated to 2.2% yoy in October, up from 2.1% yoy and matched expectations. Core CPI accelerated to 1.1% yoy, up from 0.9% yoy and beat expectation of 1.0% yoy. Eurozone unemployment rate unchanged at 8.1% in September.

The US dollar was boosted by jobs data. According to the ADP report, US private sector employment grew 227k in October, higher than expectation of 190k. lso released today, US employment cost index rose 0.8% in Q3.

On stock markets, FTSE added 1.7%, DAX gained 1.32% and CAC rose 2.21%. Major Asian indices also closed higher. Nikkei rose 2.16%, Hong Kong HSI increased 1.60%, China SSE gained 1.35%, Singapore Strait Times added 1.76%.

Canada GDP grew 0.1% mom in August, above expectation of 0.0% mom. Canada IPPI rose 0.1% mom, RMPI dropped -0.9% mom in September.

Released earlier today, Japan consumer confidence dropped to 43 in October. Housing starts dropped -1.5% yoy in September. Industrial production dropped -1.1% mom. Australia CPI rose 0.4% qoq, 1.9% yoy in Q3, versus expectation of 0.5% qoq, 1.9% yoy. New Zealand ANZ Business Confidence improved to -37.1 in October, up from -38.3.

The bank of Japan left its monetary policy unchanged and kept short-term interest rates at the level of -0.1%. The target yield of a 10-year JGB Treasury bond remained at around 0%. The Bank of Japan also kept its commitment to acquire Japanese government bonds worth 80 trillion yen per year.