Early Wednesday the dollar climbed up as the shocked global stock markets find a stable ground.
The fear of slowing Chinese and global growth caused traders selling low-yielding currencies and buying riskier assets.
US dollar was up 0.6% at 120.10 yen, recovering from low 119.225 yen as European stock markets. Yen rose overall 1.6% on Tuesday.
(source - reuters.com)
Traders are anticipating Wednesday’s U.S. ADP employment report and Thursday’s European Central Bank meeting. ADP is a soft market for U.S. non-farm payrolls due this upcoming Friday.
Risk aversion on the rise as European and Wall Street stocks are unstable. U.S. payrolls are in the spotlight with reports showing U.S. factories weakness on Tuesday, causing S&P 500 down 2.5%.
Asian shares slammed down for the third day in the row as China releases weak manufacturing reports. PMI data has discouraged the hopes of robust demand from U.S. and China.
U.S. factory activity has reached the bottom two-year low, while China’s manufacturing report keeps plunging in a dramatic way and more declines are expected.
Some investors see the current market situation as the emerging market crisis of 2015.
U.S. employment report is expected to show 220,000 jobs, according to Reuters. There is also an expectation of U.S. interest rate hike.
Dollar stays strong at 120.01 yen, while euro dropped 0.3% to $1.1284.