US Dollar Index continues to stay near after breaking to 11 year high this week. But momentum stays rather unconvincing. Traders would need more evidence regarding the strength of the US economic, and thus, the chance of a June rate hike from Fed, before pushing the greenback higher. The major focuses today will be on employment data from U. The ADP report is expected to show 210k growth in private sector jobs in February. Meanwhile, ISM services is expected to drop slightly to 56.5 in February. Fed will also release the Beige Book economic report. Technically, EUR/USD stays weak for 1.1096 low and break there will confirm down trend resumption. GBP/USD is also soft for 1.5135 support to confirm near term reversal. USD/JPY is having an eye of 120.46 minor resistance to confirm near term strength. That is, the strength in the greenback is yet to be confirmed.
Another major focus today is BoC rate decision. The central bank surprised the markets with the 25bps rate cut to 0.75% back in January. It's noted by economists that such rate cut was not only in response to the impact of oil price on inflation. More importantly, there would be a drag from oil price to related investment activities and thus the overall economy. BoC governor Stephen Poloz also noted that the correlation of Canadian dollar to oil price could even be higher than that to monetary policies. Nonetheless, Poloz also noted that last month's high already provided some "insurance". Thus, markets are generally expecting BoC to stand pat today. Attention would instead by on the statement and its bias.
Elsewhere, Australia GDP grew less than expected by 0.6% qoq in Q4. Aussie recovered mildly after RBA kept rates unchanged at 2.25% yesterday. But momentum was rather weak as RBA maintained easing bias. More downside is expected in AUD/USD at a latter stage, depending more on US economic releases. From China, HSBC services PMI rose to 52.0 in February. UK BRC shop prices dropped -1.7% yoy in February. In the European session, Italy services PMI, Eurozone services PMI final, retail sales, and UK services PMI will be featured.