You can add another disappointment to the list: ADP shows a gain of 213K private sector jobs in January 2015, slightly below expectations. This is important as jobs are part of the Fed’s dual mandate. However, this isn’t a huge miss. In addition, December’s number was revised to the upside: to 253K. Basically the miss is fully balanced by the upwards revision, but naturally an uptrend is better than a downtrend.
The US dollar is not hit so far.
The ADP report for the private sector was expected to show a gain of 224KÂ jobs in January 2015 after 241K in December (before revisions). This is a significant market mover even though the private sector jobs section of the official BLS jobs report on Friday is not always fully correlated to this one.
Before the publication, the US dollar enjoyed some recovery from the big sell off: EUR/USD traded around 1.1450, GBP/USD was around 1.5230, USD/JPY around 117.40, AUD/USD around 0.7780 and USD/CAD around 1.2457.
We later have the ISM Non-Manufacturing PMI: a read on the services sector, the largest in the US. The employment component of this report also gives a hint.
So far this week, US figures have been underwhelming: factory orders plunged and big sell off. The ISM manufacturing PMI came out worse than expected, including the employment component.
More: EUR: No Change In Trend; GBP: A Buy On Dips – Credit Agricole
