Oil slides the most in more than a year while the Dollar strengthens on strong US ADP jobs data

Since Wednesday, the Dollar rallied against its peers after a surge in US private-sector jobs in February firmed expectations that the Federal Reserve will raise rates next week, pushing the benchmark US Treasury Yields to their highest since December 2016. The ADP National Employment Report showed private payrolls grew by 298,000 jobs last month, well above economists’ expectations for a gain of 190,000, while January’s private payrolls gains were revised up to 261,000 from 246,000. According to the CME Group’s FedWatch tool, traders now see an 88.6% implied chance that the Fed will raise rates by 25 basis points at its March meeting, up from 81.9% next Tuesday.

The Euro slipped against the US Dollar as investors were awaiting the outcome of the European Central Bank’s meeting Thursday afternoon. The ECB is set to keep its monetary policy on hold as it casts a cautious eye ahead of the elections in the Netherlands and France during an upsurge in anti-establishment sentiment.

On Wednesday as well, Oil tumbled to hit a low of $50.05 a barrel after US Crude inventories climbed to a record high of 8.2m barrels. However, since Tuesday evening, Mohammad Barkindo, OPEC secretary-general, played down concerns about high oil inventories in the US. He said that observers focused on the US numbers because the data were available, and suggested that offshore Stocks were starting to decline.