Economic Data Could Provide Basis for Higher U.S. Dollar

Dollar forex trading forecast

Economic data being released today could provide the basis for a higher U.S. dollar on the currency market. The U.S. dollar forex trading forecast has been linked to risk a great deal in the past months since the global financial crisis.

Right now, there is speculation that economic data will soon be showing some concerning information about where we are headed. GFT’s Boris Schlossberg reports on FX360 about the focus today:

In North America today, the focus is on ADP employment report with markets anticipating a -250K print. Although the ADP numbers has been notoriously spotty in matching the NFP results, any material deviation from consensus could still produce a meaningful impact on equities and risk FX. Yesterday’s sharp drop in stocks suggests that traders are beginning to have second thoughts about the recovery trade and if today’s ADP data disappoints we could see an acceleration of risk aversion flows as the day progresses.

So far, the U.S. dollar has been mixed in forex trading. The greenback is down against the pound, but up against the euro. Right now, gold prices are moving with the U.S. dollar against the euro in forex trading. Gold is gaining as safe haven investments become popular again.