January ADP Non-Farm Employment Change is +175K. Automatic Data Processing was expected to report a gain of 191K private sector jobs in January after a rise of 227K (revised down from 238K) in December. December’s official NFP was very low, only 74K, far from ADP’s number. So a revision to December’s number is a bit of a positive surprise. We can now expect a positive revision in the Non-Farm Payrolls report on Friday.
Before the publication, EUR/USD was on the rise, breaking from the tight range to 1.3540. GBP/USD continued struggling around 1.6270 and USD/JPY traded around 101. Update: the small rise in the dollar is erased and and the greenback is now on the back foot.
Update: ISM Non-Manufacturing PMI: 54 in January – a bit better than expected
The ADP report is the second important hint towards Friday’s NFP. The first one was an ominous one: ISM Manufacturing PMI disappointed with a big drop in the headline number and as well as a big one in the employment component. Weather got part of the blame, but markets didn’t really buy that excuse.
Another big hint comes from a bigger sector: services, and it’s coming soon: see how to trade the ISM Non-Manufacturing PMI with USD/JPY.
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