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Dollar index edging higher this morning ahead of important US data releases later on

Yesterday, as covered here at the time, the Dollar index (USDX) peaked at 105.10. The fall that came after that was not steep though and the index held around 104.75. It later closed in the US at 104.81. Today it has edged higher from an earlier session low at 104.70 and moving back to above 104.85. Now, later today we have some important US data that could endorse that rebound or send the index lower again. The first of those is at 1.15pm GMT and it is the latest ADP payroll report for March. This is forecast to show a rise of around 150k, compared to the gain of 140k seen in February. The other important release (arguably the most important) comes at 3pm GMT and that is the service sector ISM report. We know the manufacturing ISM smashed forecasts on Monday and so the markets will be watching this data with equal focus. The index also has the same moving parts as the manufacturing report- Prices Paid, New Orders and Employment. Once again if could be the Prices Paid component that matters most of all, as further signs of inflation in the service sector will impact the bond and stock markets and the dollar index. There will be more detail on what is expected in updates here later this morning. Meantime, ahead of that we have a Dollar that is edging higher this morning, ahead of some important EU data at 10am GMT-  March flash EU CPI. 

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