Dollar advances ahead of labor market data

The US dollar was up broadly on Thursday, pushing the EURUSD pair below 1.22 and the USDJPY pair toward the important 110 level. 

Earlier in the day, Chinese Caixin Services PMI slowed to 55.1, indicating a slower growth rate in the services sector in China.

Later in the session, the main focus will be on the US ADP employment change for May. Analysts expect 650,000 new jobs, down from 742,000 in April. But still, a number above 500,000 indicates the labor market is healing fast, despite many people not wanting to work due to unemployment benefits.

Additionally, US jobless claims will be released, with initial claims forecast to drop below 400,000. 

Tomorrow’s NFP and unemployment rate data will conclude this week’s labor market update. 

However, traders will pay attention to the ISM services index for May, which should improve further to 63.0, up from 62.7. The released time is at 4:00 PM CET today. 

Stronger greenback led to some profit-taking in the precious metals, with gold falling to new short-term lows below 1,893 USD, implying a larger correction could begin any time now. Silver was down more than 1%.

On the other hand, oil continued higher to new cycle highs as the WTI benchmark is marching toward the psychological 70 USD barrier.

Source: https://www.axiory.com/market-news/dollar-advances-ahead-of-labor-market-data