The dollar remains broadly offered on Wednesday and hit new lows against the basket of major currencies. Rising uncertainty ahead of US election keeps the greenback at the back foot, with additional pressure coming from disappointing US employment data on Wednesday.
ADP report that is used as indication for Non-Farm Payrolls data, fell to 147K in October, undershooting the forecast of 166K, while September’s figures were revised upward to 202K from initial 154K.
Dollar’s overall bearish sentiment persists, as investors are cautious after recent news undermined position of Hillary Clinton ahead of election next week, amid fears over implications of a victory of Republican candidate Donald Trump.

Traders are focusing release of FOMC monetary policy due later today. With expectations for Fed to stay unchanged in November, focus shifts on December’s meeting, as Fed is widely expected to raise interest rates. Fed Watch Tools is pricing on 92.8% possibility of 25 – 50 basis points hike in December.
Today’s ADP data were disappointing, however, upwards-revised September’s numbers keep the outlook in jobs sector positive. Traders are looking for Friday’s release of US NFP data, with forecast being revised from 175K to 166K.

The dollar index remains in steep descend for the second day, down 0.48% since Wednesday’s opening and losing important support at 97.51.
The Euro and Sterling posted new highs against the dollar, with Cable eventually breaking above strong resistance at 1.2330, which is seen as a trigger for stronger recovery.

EURUSD is up 0.48% until now, while Sterling rose 0.57% from Wednesday’s opening.

USDJPY fell further on Wednesday, slipping 0.82% on steep bearish acceleration that extends for the second day.

Crude Oil is the top loser of the day, falling to the lowest levels of the session during North American trading on Wednesday, adding to previous losses after data showed that US crude inventories surprisingly rose by 14.4 million barrels in the week that ended October 28, showing the biggest crude stocks rise since at least 1984.

US Oil price slumped over $1 to $45.00 per barrel, minutes after the data were released, marking 2.63% loss since Wednesday’s opening.
Oil price remains in steep descend from $52.21 peak, pressured by OPEC’s members failing to finalize details on individual output quotas until its next official meeting in Vienna on November 30, after general agreement about production cut was reached in Algeria in late September.

European Stocks remained deeply in red on Wednesday and extended strong losses from the previous day. Britain’s FTSE 100 fell 0.74% from opening; German DAX slipped 0.54%, while French CAC was down 0.43%.

Wall Street followed negative sentiment from Asia and Europe and opened lower on Wednesday. Dow Jones was down 0.22% after opening; Nasdaq fell 0.14%, while S&P500 was down 0.17% after opening on Wednesday., Market Analysis