RTTN:Dollar Falls Ahead Of ADP Employment Report And Fed Meeting
(RTTNews) - The U.S. dollar declined against other major currencies on Wednesday ahead of the ADP National Employment Report and the Federal Reserve monetary policy announcement.
The U.S. ADP National Employment report, which shed light on non-farm private employment, is expected at 8:15 am ET. The consensus expectations are for an addition of 100,000 jobs by the sector in October following an addition of 91,000 jobs in September.
The Fed is due to announce its interest rate decision at 12:30 pm ET. Although the Fed is expected to keep rates unchanged, the central bank's updated economic forecast and the Chairman Ben Bernanke's accompanying press conference will be closed watched.
Traders also focus on an emergency meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel today in Cannes to discuss Greek Prime Minister George Papandreou's decision to call for a referendum on the EU rescue deal.
The troika will join the Eurozone leaders in the talks, scheduled just before the G20 meeting. The leaders will push for a quick implementation of the bailout deal, which is the only solution to the debt crisis, Sarkozy said Tuesday.
The dollar is currently worth 1.3800 against the euro and 1.6032 against the pound, compared to yesterday's close of 1.3696 and 1.5948, respectively. The next downside target level for the dollar is seen at 1.385 against the euro and 1.615 against the pound.
The dollar is now worth 0.8820 against the franc, down from yesterday's close of 0.8875. If the dollar-franc pair weakens further, it may likely target the 0.875 level.
The dollar that closed yesterday's trading at 78.41 against the yen is presently trading at a 2-day low of 77.96. On the downside, 77.4 is seen as the next target level for the US currency.
