Will Crude inventory and U.S ADP Change keep volatility active today?

The U.S. dollar witnessed gigantic moves against its major currencies yesterday. It increased by over 5% as reasonably positive industrial and construction statistics from the United States helped to offset a drop in job postings last month to the lowest level in more than two years.

The dollar index rose by 0.10% against a basket of currencies to 101.9590.

 Gold prices plunged by 0.30% and settled at 59388. Silver gave up the previous day’s gain and settled at 73943, down 1.97%.  Copper retreated by 1.5% and settled at 744.45. Crude was up by 0.45% at 6727.00.

Economic data released yesterday

The monthly Job Openings and Labor Turnover Survey, or JOLTS report from the Labor Department, remained consistent with tight labour market conditions despite hefty interest rate increases by the Fed to dampen demand and curb inflation.

As of June 30th, there were 9.582 million job opportunities, the lowest number since April 2021, a reflection of the labour market. This represents a decline of 34,000 jobs. Reuters polled economists, who predicted 9.610 million job opportunities.

U.S. construction spending rose 0.5%. Construction spending increased by 1.1% in May instead of the previously reported 0.9%, according to data that was revised higher.

The manufacturing PMI for the United States, according to the Institute for Supply Management (ISM), increased marginally from 46.0 in June—the lowest figure since May 2020—to 46.4 last month.

The work market in Germany remained resilient in July despite challenging economic conditions, but the first fractures are beginning to show. Seasonally adjusted, there were 4,000 fewer unemployed people, for a total of 2.604 million.

Eurozone final euro zone manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Globa fell to 42.7 in July from June’s 43.4, its lowest since May 2020 and matching a preliminary reading. A value of less than 50 indicates a decline in activity.

The S&P Global (NYSE: SPGI)-compiled India Manufacturing Purchasing Managers’ Index fell from June’s reading of 57.8 to 57.7 last month, but it was still marginally higher than the 57.0 reading predicted by the Reuters poll.

Economic data and events to watch today


At 5.20 am Monetary Policy Meeting Minutes

 Snaky headlines from the meeting minutes will drag huge volatility in Yen.


At 12.30 pm – Spanish Unemployment Change. Data is foreseen at -38.2k from the previous -50.3k.


At 5.45 pm – ADP Non-Farm Employment Change. Data is foreseen at 191k previous was at 497k.

At 8.00 pm – Crude Oil Inventories. The forecast is -0.9 M; the previous was at -0.6 M.

Above data could have a volatile impact on the Greenback.