The private sector gained 179K jobs in June according to ADP, slightly above expectations. This shows the stability that markets want to see. Will it be reflected in the official BLS report? The figure for June was revised up to 176K, still not reflecting the official June jobs report.
The US dollar is marginally stronger. EUR/USD slips under 1.12, GBP/USD slips to 1.3333, USD/JPY and is ticking up to 101.15. Among the commodity currencies, USD/CAD is at 1.3110, AUD/USD at 0.7585 and NZD/USD at 0.7180.
More: ISM Non-Manufacturing PMI misses with 55.5
Automated Data Processing (ADP) was expected to report a gain of 170K jobs in the US private sector, similar to the 172K gained in June (before revisions). ADP has not been very well correlated to the actual gain in private sector jobs as seen in the official Non-Farm Payrolls. It underestimated the big jump in July and didn’t foresee the big miss in May.
The US dollar remained on the back foot, mostly due to the poor growth figures as well as the dovishness seen from the Fed.
Another hint for the NFP comes out, later on, today: the ISM Non-Manufacturing PMI. This services sector report will provide an indication also about hiring. The ISM Manufacturing PMI slightly missed expectations.
More: JPY Still Undervalued; USD/JPY: To Drift Lower Towards 98 – BTMU
Share
