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ADP Non-Farm Payrolls shows a gain of only 156K jobs in April. In addition, the data for March was slightly revised to the downside: 194K instead of 200K initially reported. Jobs were the  shining light in the US economy and this light shines  a bit less now.

The greenback goes down  across the board.

Currency reaction to ADP NFP

  • EUR/USD advances to 1.1520, managing to re-settle above the round 1.15 level.
  • GBP/USD bounces to 1.4530 despite weak construction PMI
  • USD/JPY is getting further away from 107, and to the downside.
  • USD/CAD is falling down, dipping below support at 1.2750.
  • AUD/USD is making an attempt to regain 0.75.
  • NZD/USD is around 0.69

ADP NFP Background

The private sector jobs report  by Automated Data Processing (ADP) was expected to show a gain of  around 196K in April, similar to 200K in March. The ADP NFP serves as a hint to the official publication coming out on Friday.

The US dollar continued its recovery path towards the publication. The  greenback had a Turnaround Tuesday.

There is another important NFP hint today: the ISM Non-Manufacturing  PMI: the services sector report provides an interesting picture of the US economy. The employment component serves a more specific indicator towards the jobs report on Friday.

We  will also get the trade balance,  unit labor costs and productivity data from the US.