EURUSD, H1
US ADP reported private payrolls rose a mere 67k in November following a revised 121k (was 125k) October gain. That’s a big miss. The weakness was in the goods producing sector, likely a function of the UAW strike and the impact on peripheral workers, with an -18k drop thanks to -6k declines in each of the categories manufacturing, construction, and natural resources. The service sector added 85k with a 39k climb in education and 28k increase in professional business services offsetting a 15k decline in trade & transport. The headline miss adds to the disappointing Manufacturing ISM report yesterday and ahead of today’s more significant and important Non-Manufacturing ISM report.
It was the lowest number since May (46,000) and continues the trend of decelerating job growth. The ADP private payrolls are used as a rough guide for the more important NFP employment report on Friday, which has also been declining since the August peak and trending lower all year.
The Dollar headed lower following the ADP jobs miss, taking EURUSD to two-week highs over 1.1100 from 1.1080, Cable breached 1.3100 and USDJPY slipped to 108.55 from over 108.70.
Click here to access the Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
