ADP NFP came out at 191K, within expectations. Automatic Data Processing was expected to report a solid job growth of 192K in the private sector in March. This is higher than 139K in February (before revisions). This was now revised to +178K. While the correlation between the ADP report and the private sector portion of the Non-Farm Payrolls is not always great, it serves as an important hint and certainly shakes the markets.
The dollar was strengthening towards the publication, with EUR/USD falling off 1.38, USD/JPY climbing above 103.60 and GBP/USD under 1.6650. The dollar is slightly stronger afterwards.
The backwards revision to February shows that the winter effect wasn’t that bad. Adding the +39K revision to the 191K rise in March makes a gain of 230K.
Yesterday, the ISM Manufacturing PMI slightly disappointed, with the employment component dropping to 51.1 points, too close to the 50 point mark separating contraction from growth. However, the manufacturing sector is small in comparison to the services one. ISM’s non-manufacturing PMI is released tomorrow.
US factory orders are due later on, and a rebound of 1.3% is expected.
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