Not all is well in the US job market: ADP Non-Farm Payrolls stands at 218K in July, below expected. Automatic Data Processing was expected to show a gain of 230K private sector during the month of July. There has been a stronger correlation between the ADP number and the NFP private sector figure in recent months.
The dollar was on the roll towards the publication: EUR/USD was struggling to hold above 1.34, GBP/USD was down to around 1.6923 and USD/JPY is around 102.25. Currencies are relatively stable, probably awaiting for the GDP release.
Update: GDP at +4.0%, much better than expected.
This is not a huge miss. Last month saw 281K before revisions.
The publication serves as a more important than usual hint towards Friday’s Non-Farm Payrolls. The reason is that this time the NFP is released on August 1st, so not too many indicators precede it: less hints means more importance for those indicators that are actually released.
Just 15 minutes after this release we have an even more important one: the first release of US GDP growth for Q2.
See how to trade the US GDP with GBP/USD
And lest we forget, at 18:00 GMT we have the FOMC decision. A 6th taper is expected to $25 billion and the focus is on the statement.
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