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A much better than expected jobs report from ADP: no less than 237K jobs were gained in August, up from an upwards-revised 201K. All in all, this can be seen as a beat worth 54K for August and +23K for July = 77K. America is hiring.

It’s all good and the US dollar reacts positively across the board:

  • EUR/USD extends its drop after the big U-turn and trades at 1.1918.
  • USD/JPY feels more comfortable above 110 and trades at 110.18.
  • GBP/USD is down to 1.2915, after eyeing the 1.30 level earlier.
  • USD/CAD is around 1.2560. The pair was in deeper levels yesterday.
  • AUD/USD is around 0.7935, failing to rise above 0.80, and not for the first time.

Update:  US GDP revised up to the magic 3% level – USD looks strong

ADP was expected to report a gain of around 183K private sector jobs in August. In July, the payrolls software company reported a rise of 178K jobs. This report serves as a hint towards Friday’s NFP, despite not always providing a direct correlation with the official BLS number.

The US dollar continued its path of recovery, especially against the euro that made a total U-turn.

This is a busy day for US data: we will soon get the second estimate of GDP, which carries expectations for a rise from 2.6% to 2.7%. The biggest event of the week is the official Non-Farm Payrolls.

Preview: 5 reasons why this NFP could be very volatile.