The USD Dollar has turned pretty bearish this week, starting from last Friday. The US economy was holding up pretty well until a few months ago as the major economies of the globe were going through a really soft patch. But, it has slowed considerably in the recent months as the economic data has shown us and the USD has turned pretty bearish as the negative numbers keep accumulating.
On Wednesday we saw the ADP non-farm employment change come much lower than expected and yesterday unit costs declined by 1.6% during the Q1 of this year, which means that wages were weak in Q1. Today we have the unemployment rate, the non-farm employment change and the average hourly earnings.
The unemployment rate and the non-farm employment change are connected to the ADP employment figures, so if they come positive today, the market will be more relaxed regarding the weak figures we saw on Wednesday. Earnings are for May, which is more recent than the Q1, thus showing the actual picture of the economy clearer, so if they also come positive at 0.3% as expected or higher, then yesterday’s number won’t be that important anymore. The vice versa is also true and the reaction will likely be even stronger on the USD since it would confirm that the US economy is in a really weak position. So, stand ready when the data comes guys.