Market sentiment improved overnight with US equity bourses higher across the board on better than expected employment and ISM non-manufacturing data. July ADP employment posted a gain of 42k, beating estimates for a reading of 30k, while ISM printed at 54.3, up from 53.8 a month prior. The news eased nervous investors after a flurry of disappointing data on Tuesday triggered a sell-off in equities, with the dollar index slumping to its lowest level in nearly four months. The Dow, the S&P, and the Nasdaq were higher by 0.4%, 0.6%, and 0.9% respectively. Asia Pacific markets were mostly firmer with the Nikkei 225 gaining more than 1.7% on better than expected earnings reports and positive data out of the US. The S&P/ASX 200 index was also higher by 0.5% after Australia posted its highest trade surplus on record on Wednesday. Treasury yields came off record lows, while the yen retreated from an eight-month high against the greenback on improving risk appetite. Investors remain cautious however, ahead of tomorrow's jobs report out of the US. Commodities were generally lower with crude oil creeping back below $82 per barrel. Gold continues to hover just below $1200 per ounce, after reaching as high as $1203 yesterday in New York. The dollar index relinquished gains to trade at 80.66, with support seen just below at 80.60. The swissy and the loonie were the best performers against the greenback, both advancing nearly .6% on the session. Euro Holds 1.32 The euro was firmer against the greenback after falling as low as 1.3121, late in Asian trade. The single currency advanced nearly 0.5% to trade at 1.3220 early in the session, as traders wait for today's central bank rate decision. Interim resistance rests at the lower band of the ascending channel dating back to the June 29th low. Subsequent floors are eyed at 1.3090, at the 50% Fibonacci retracement from the July 21st low at the 1.30 figure, and 1.2965. Interim resistance is seen at 1.3230, with targets eyed higher at and 1.3260, 1.33, and 1.3340. Both the BOE and the ECB are expected to leave rates unchanged today at 0.5% and 1.0% respectively. At 8:30am in New York, Canada reports on June building permits with the figure seen higher by 1.8% m/m. At the same time, the US releases weekly jobless claims, with consensus estimates calling for a slight easing at 455k, from 457k. Tomorrow's diary sees PPI and industrial/manufacturing production numbers out of the UK, followed by industrial production figures from Germany. Traders will be looking ahead to tomorrow's employment data out of Canada and the US. Canadian unemployment is seen holding steady at 7.9%, while the US is expected to uptick to 9.6%. The all important non-farm payroll report is out at 8:30, with payrolls called lower by 65k. European markets are higher across the board, with US equity futures also pointing to a stronger open, mid day in London.

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