Published: 2024-01-04T13:20:34.000Z
EUR/USD, USD/JPY flows: USD supported by ADP

Senior FX Strategist
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ADP uneliable, but on the strong side. EUR supported by upward revision in PMI so USD/JPY bearing the brunt of USD strength
German CPI came in in line with expectations, so the upward revision in services PMI is the dominant EUR data today. The ADP numbers are unreliable, and the jobless claims data later may have a bigger impact. But the 164k rise is clearly on the strong side of expectations, so should be USD supportive. USD/JPY continues to bear the brunt of USD strength, and there is scope to the 144.70 retracement target on these numbers. EUR/USD looks likely to be stuck 1.09-1.10 near term.