FX Update — USD
USD is higher across the board for a second consecutive day thanks to the unexpected increase in July ADP payrolls, which has had a positive impact on both bond yields and equities. The USD Index is up 0.15% to 73.358 after trading in negative territory for most of the overnight session.
EUR/USD, down 0.35% to 1.5535, fell to its lowest level in 5 weeks following the ADP report and is trading within a narrow coincident range from July 16-26. Cable, marginally lower at 1.9783, bottomed out at 197.46 following the ADP report and has since returned to flat on the day.
USD/JPY is up 0.12% to 108.24 with the 21- and 200-day moving averages converging under price at 106.8566. USD/CHF, up 0.35% to 1.0505, is trading at its highest levels since mid-June. USD/CAD is up 0.2% to 1.0255 with the 1.03 handle representing the next significant level of resistance.