ADP reported a rise of 198K private sector jobs during January, and beat expectations of +172K. In addition, the figure for January was revised to the upside: +215K instead of 192K. It is notable that the previous revision was very similar, and to the downside: from +215K to +185K.
This upbeat report helps the US dollar. EUR/USD is now sliding to 1.3030. GBP/USD is also closer to the day’s lows.
This news joins the very strong ISM Non-Manufacturing PMI. The headline figure reached 56 points, which reflects healthy growth, and the employment component remained high at 57.2 points.
The ADP report is one of the hints towards the official Non-Farm Payrolls report on Friday. While the figure isn’t always close enough to the private sector part of the NFP, the ADP report still has a significant impact on markets, and also helps shape expectations.
Further reading: Forex Trades To Watch In A Record Breaking Week
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