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The number of private sector payrolls rose by 200K. It was expected to rise by 179K, according to ADP, similar to the gain of 198K (revised up from 188K originally reported) in June. This is the first hint towards the Non-Farm Payrolls publication on Friday.  

The dollar and the yen were showing some strength: USD/JPY dropped to 97.70, EUR/USD failed to breach 1.33 and GBP/USD dipped below 1.52. The dollar is now on the rise: EUR/USD is sliding to 1.3244, USD/JPY is back above 98 and GBP/USD is already at 1.5160. The release also triggered a collapse of the Aussie: the pair fell below 0.90 and took a big dive.

Update:  US Q2 GDP +1.7% – USD extends gains

Recently, ADP hasn’t been only a market mover, but also a more serious hint towards the Non-Farm Payrolls publication on Friday. This time, the ISM Non-Manufacturing PMI (services sector) is published only after the NFP, so the remaining data are more important.

The ADP release begins a very busy day: only 15 minutes afterwards, the US releases its first estimate for Q2 GDP. Expectations are quite low, for an advance of only 1.1% after 1.8% in Q1.

See how to trade the US GDP with EUR/USD.

Watch out for revisions in GDP: they are expected to be big this time.