USD Extends Gains

At 3:55 AM Germany April Manufacturing PMI (exp 57.3, prev 56.9)
At 4:00 AM Eurozone April Manufacturing PMI (exp 55.7, prev 55.4)
Germany April Unemployment Rate (exp 9.1%, prev 9.2%)
Germany April Unemployment (exp 3.94 mln, prev 4.108 mln)
Germany April Unemployment Change (exp -40.0k, prev -65.0k)
At 4:30 AM UK March Consumer Credit (exp 900 mln stg, prev 919 mln stg)
At 5:00 AM Eurozone March Unemployment Rate (exp 7.2%, prev 7.3%)
At 8:15 AM US April ADP Payrolls (exp 100.0k, prev 106.0k)
At 10:00 AM US March Durable Goods Orders (exp 3.3%, prev 3.4%)
US March Factory Orders (exp 2.1%, prev 1.0%)

Markets continued to reward the dollar for yesterday’s higher than expected manufacturing report, with the greenback piercing through the 120-level versus the yen for the first time in 2-months. Trading remained choppy in the overnight session, as position squaring in the euro and sterling pushed both lower toward 1.3562 and 1.9915 respectively against USD. We anticipate these conditions will linger heading into Friday’s all-important US non-farm jobs report.

On the calendar for today, we’ll see the April ADP payrolls report and March durable goods orders. Traders will look at the ADP payrolls data as a proxy for Friday’s non-farm payrolls reading. The April figure is seen slipping to 100k, down from 106.0k previously. Meanwhile, the March durable goods orders are largely unchanged, down marginally to 3.3% versus 3.4%. Factory orders are seen edging up to 2.1% from 1.0%.