A solid jobs report from ADP: a gain of 230K jobs in October, better than expected. This was joined by an upwards revision of September to 225K.
The dollar is somewhat stronger in the initial reaction, but retreats afterwards. This is a choppy reaction, perhaps in anticipation to another major US release. Or, perhaps the dollar finds it hard to continue pushing higher and needed a much bigger positive surprise.
Update:Â ISM Non-Manufacturing PMI disappoints, but employment component highest since 2005
ADP was expected to report a gain of 214K jobs in October, similar to 213K initially reported in September (before revisions, now revised up to 225). This serves as a hint towards Friday’s Non-Farm Payrolls.
The dollar was very strong towards the publication, with new highs against JPY, AUD and CAD.
The dollar rose on the background of the Republican sweep in the midterm elections, but also on falling oil prices and the prospects of Fed tightening.
Later on we have another significant release: the ISM Non-Manufacturing PMI. The services sector is the largest in the US, and the purchasing managers’ index is expected to remain strong around last month’s 58.6 points.
More:
- EUR/USD: Holding 78.6% Fibo But Stay Bearish & Short – Credit Suisse
- Are US wage hikes around the corner? March hike on the cards
