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.
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.
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