A disappointment from the US jbos market: Automatic Data processing reports a gain of only 179K in May. The ADP report was expected to show a gain of 217K jobs in May after it originally reported 220K in April. This was now slightly revised to the downside, to 215K. The figure is not always fully correlated with the private sector section of the official Non-Farm Payrolls report on Friday, but it certainly has an impact on the markets.
Before the publication, EUR/USD traded at 1.3620, GBP/USD around 1.6750 and USD/JPY at 102.60. The dollar is on the retreat immediately after the release, but isn’t falling too much– more coming —
ADP says that this is the result of the harsh winter: April saw a big bounce in jobs after the weak numbers beforehand (especially in January) and now we see a bounce back down to average numbers.
There are more interesting figures released today in the US. The trade balance release is coming soon, and it is followed by the more interesting services PMIs.
Markit will release its final services PMI for May after the preliminary release showed 58.4 points. The ISM Non-Manufacturing PMI is predicted to show a small rise to 55.6 points.
