The EUR/USD pair ended a strongly bearish session yesterday afterGermanysold 4.06 billion euros of 10-year bonds below the targeted quantity of 5 billion euros, which revived debt concerns and led the sentiment to deteriorate.
The focus today will turn to the United states, which is to release the closely watched ADP employment report, with expectations the private sector could have added 175 thousands additional job in December.
The focus then will turn to the ISM non-manufacturing composite, where investors will look forward to the index after the improvement seen in the services sector across the global.
We expect the EUR/USD pair to fluctuate heavily during the European session ahead of the French bond auction, where the French Treasury is to sell long-term bonds today, and as usual the focus will remain on the yields and the strength of demand forFrance’s bonds.
The euro zone will start the session at 10:00 GMT with the Industrial New Orders indexes for October, where the non-seasonally adjusted annual index could have expanded by 3.3% from 1.6%, while the seasonally adjusted monthly index could have expanded by 2.5% from the previous drop of 6.4%.
The euro zone will also release the PPI indexes for November, where the monthly index is expected to remain steady at 0.1%, while the annual index could have eased to 5.2% from 5.5%.
TheUnited Stateswill join the session at 13:15 GMT with the ADP Employment Change from December, where the private sector is projected to add 175 thousand additional jobs compared with the previous addition of 206 thousand jobs.
At 13:30 GMT theUnited Stateswill release the Initial Jobless Claims (DEC 31), where jobless claims are expected lower at 375 thousands compared with the prior 381 thousands.
At 15:00 GMT theUnited Stateswill provide the ISM Non-Manufacturing Composite index for December, which could have expanded to 53.0 from 52.0.
Originally posted here
