Good news from the US labor market: ADP reported a gain of 217K private sector jobs in November, some 27K better than predicted, and this comes on top of an upwards revision for October, to 196K.
The US dollar is stronger across the board.
ADP was expected to report a gain of 190K jobs in the private sector in November. They reported 182K for October (before revisions). This serves as a hint towards the NFP, despite the unclear correlation between the two. It certainly moves markets.
Towards the release, the dollar was gaining back some lost ground.
- EUR/USD traded at 1.06, licking its wounds after the weak inflation data. The pair slips under 1.06.
- GBP/USD stood on low ground around 1.5025 after a disappointing construction PMI. Cable is closer to 1.50.
- USD/JPY was around 123.15. Dollar/yen ticks higher.
- USD/CAD traded at 1.3380 ahead of the rate decision in Canada. Now closer to 1.34.
- AUD/USD was at 0.7325 following upbeat GDP.
- NZD/USD was stable at 0.6655.
Just before the publication, the Fed’s Lockhart spoke and provided hawkish words, including that December may be a historic decision and that the liftoff is compelling unless there is some major disaster.
Later today we have a speech from Fed Chair Janet Yellen as well as other market moving events. And tomorrow, it’s ECB day.Get the 5 most predictable currency pairs