USD – The dollar declined to a more than a one-week low on Wednesday after ADP data showed a drop in private sector employment in January due to the increase in COVID-19 infections.
Commenting on the release, Reuters noted that “because ADP has been so detached from payrolls recently, the impact pf the severe drop was limited. Moreover, White House and Fed officials have been warning that Friday’s jobs report was going to be weak as a results of Omicron disruptions.”
EUR – The single currency rallied on Wednesday, after data showed that Eurozone inflation for January rose to a new record high, defying expectations for a big drop and piling pressure on the ECB to finally admit that price growth is not as temporary and benign as it has long predicted.
Commenting on the report, Natixis argues that the ECB “have to recognize there are upside risks and the (inflation) path they laid out in December looks to benign… Underlying price pressures remain high and put the ECB in an awkward position.”
Commenting on the release, Reuters noted that “because ADP has been so detached from payrolls recently, the impact pf the severe drop was limited. Moreover, White House and Fed officials have been warning that Friday’s jobs report was going to be weak as a results of Omicron disruptions.”
EUR – The single currency rallied on Wednesday, after data showed that Eurozone inflation for January rose to a new record high, defying expectations for a big drop and piling pressure on the ECB to finally admit that price growth is not as temporary and benign as it has long predicted.
Commenting on the report, Natixis argues that the ECB “have to recognize there are upside risks and the (inflation) path they laid out in December looks to benign… Underlying price pressures remain high and put the ECB in an awkward position.”