The ADP report for the private sector has show a gain of 110K jobs in October, similar to gains seen in previous months. Early expectations stood on a gain of 102K.
EUR/USD reacts with a small rise and approaches minor resistance at 1.38. This is a classic “risk on” behavior” on a positive indicator. The moves are limited due to the European debt crisis, the small surprise and the anticipation towards the Federal Reserve meeting.
This is the 13th consecutive gain in jobs reported by ADP. The last three months saw gains of around 100K.
Earlier, Challenger, Gray & Christmas Inc. reported that the number of planned job cuts rose in October 2010 stood on 42,759. This is up by 12.6% from October 2010 but significantly lower than the leap to 115,730 reported in September 2011.
Yesterday, manufacturing PMI dropped to 50.8 points, but its components actually showed a picture of improvement. The employment component remained almost unchanged. All the indicators so far point to a positive Non-Farm Payrolls. The last major figure is the ISM Non-Manufacturing PMI.
Later today, the Federal Reserve will make its scheduled rate decision. No major changes are expected. See the preview for details.
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