Dollar tilts lower.
The ADP data came in weaker than expectations. The USDJPY fell on the news. The pair iis now lower on the day and looks to test the sesssion low at 107.96 (just below the 108.00 level now). The US stock futures still are higher, but off highs.
- The Dow is up 112.
- The S&P is up 12 points.
- The Nasdaq is up 46 points now.
Yields in the 2 year moved even lower and is down -7 bps now.
The economy is showing weakness, but the Fed will be more inclined to cut rates. So the reaction can be mixed (especially stocks).
For the USDJPY reached a low earlier today at of 107.964. The low yesterday reached 107.84. Those are the obvious targets now.
On the daily chart, the 61.8% of the move up from the January 3 flash crash low comes in at 107.74. The January 4 low (ignoring the flash crash low) comes in at 107.507.
