Bad news for the US economy: according to ADP, only 169K private sector jobs were added. This is significantly worse than expected. In addition, last month’s figure was revised to the downside: 175K instead of 189K originally reported.
The USD is lower, with EUR/USD climbing to 1.1260, GBP/USD rising to 1.5240, USD/JPY ticking lower to 119.60, USD/CAD is battling 1.20, AUD/USD has settled above 0.80, and NZD/USD is climbing towards 0.75.
— more coming
Private sector jobs were expected to rise by 200K in April in the reported from Automated Data Processing (ADP). In March, they reported a disappointing gain of 189K, and this served as a hint for the poor NFP that followed.
The US dollar was not getting a lot of love before the publication. EUR/USD traded around 1.1220, GBP/USD above 1.52, USD/JPY around 119.80, USD/CAD at 1.2025, AUD/USD around 0.80 and NZD/USDÂ just under 0.75.
The ADP report is not always fully correlated with the private sector component of the NFP, but it always moves markets.
We will soon receive more data from the US: unit labor costs and non-farm productivity.
More: EUR/USD: A Buy Signal Or A Warning Signal– JP Morgan, ING
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