ADP Non-Farm Payrolls +188K- above expectations – dollar higher

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Private sector jobs rose by 188K in June according to ADP. They were expected to rise by 161K after a rise of 134K in May (marginally revised lower from 135K). While the correlation between this report for the private sector and the full official Non-Farm Payrolls report for the whole economy is sometimes weak, this figure still rocks the markets, as the Fed closely watches the numbers. 

EUR/USD was trading at around 1.2960, It slipped below 1.2945 before recovering. Update: the recovery extends to 1.2970. The euro is now higher than before the announcement. USD/JPY was down to around 99.40 and is now higher at 99.63. Something is pushing the euro, and only the euro, higher.

Update: Weekly jobless claims 343K as expected, big drop in continuing claims

Update 2: ISM Non-Manufacturing PMI 52.2, but employment component leaps to 54.7

A few months ago, Automatic Data Processing changed the formula for its calculation, and it seems that the accuracy has improved.

Opinion: US dollar strength to continue

Trade balance is expected show a deficit of 40.3 billion in May, just like in April (before revisions). Weekly jobless claims are predicted to remain almost unchanged at 345K.

There is another significant figure awaiting us today: the ISM Non-Manufacturing PMI (services). This is the biggest sector in the US.

See how to trade the ISM Non-Manufacturing PMI with USD/JPY.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.