Daily Report

The U.S. Dollar strengthened against most of its peers as the ADP Employment Services showed that U.S. companies added 91,000 workers. Despite the high numbers, the data  

The U.S. Dollar strengthened against most of its peers as the ADP Employment Services showed that U.S. companies added 91,000 workers. Despite the high numbers, the data fell short of expectations. The currency gained further as the Commerce Department released data confirming that Factory Orders rose in the month of July by 2.4 percent. In addition, the Institute For Supply Management Chicago Inc. ‘s barometer of business activity declined to 56.5, which was less than expected. Analysts believe that the market did not react in a negative way towards the employment metrics, as the ADP has lost much of its credibility; however, they do expect Friday’s Non-Farm Payroll to be disappointing. Meanwhile, Canada’s Dollar declined for the first time in one month on speculation that the slowdown in the U.S. economy will hurt its export sector. The Loonie slumped against most of its peers as its economy contracted.

The Euro dropped following the release of economic reports out of the U.S., but extended losses on rumors that Greece hired a legal counselor to help it withdraw from the Euro-Zone. Greece denied such speculations and added that it retained the firm of Gottlieb, Steen and Hamilton LLP to help the country with bond negotiations and the debt buyback. Economic reports showed no changes in CPI. Given the high rate of employment, investors believe the ECB is less likely to increase interest rates any time soon. Unemployment in the region rose to 10.0 percent while German unemployment remained unchanged. The Swiss Franc advanced versus all of its counterparts as the country’s national bank failed to act to weaken the monetary unit despite hinting it would intervene to curb the Franc’s overvaluation. A negative outlook towards the U.K.’s economy weighed on the British Pound. Since there were no economic releases on Wednesday, the currency was vulnerable to Dollar purchases. The British Pound slumped further on worries over the country’s slow recovery.

The Yen rose given the lower than anticipated data and the bearish outlook in the Euro-region and the U.S. On the economic front, Industrial Production was lower than forecast and the strong value of the Yen was to blame.

Lastly, economists believe that the Australian and New Zealand Dollars are headed towards a decline versus the greenback and the Yen as the global economies slow down. Analysts believe that slower growth will have an impact on commodity-related monetary units.