The ADP Non-Farm Payrolls report exceeded expectations for November and hit 215K jobs in the private sector. It was expected to show a gain of 172K jobs after a gain of 184K (revised up from 130K). This serves as a hint towards the Non-Farm Payrolls report on Friday. If the NFP (for both the private and public sectors) crosses the 200K mark, the “Detaper†expectations will rise.
Before the publication, EUR/USD traded at around 1.3590 and it is now at around 1.3570. USD/JPY was at around 102.40 and it is closer to 1.0250. GBP/USD was around 1.6360 after a disappointing services PMI and is now loer to 1.6343.
The ADP report for the private sector has printed numbers that were lower than the actual private sector portion of the Non-Farm Payrolls. However, it had a closer correlation than in previous years. With this report, ADP is more aligned with the government.
Earlier this week, the ISM Manufacturing PMI exceeded expectations, and reached the highest levels since 2007. This includes the employment component.
More top tier events await us: trade balance, new home sales (for two months), and most importantly, the ISM Non-Manufacturing PMI and its employment component.
Update: ISM Non-Manufacturing PMI disappoints with 53.9, weak employment component – USD slides
More: the real reason behind a potential Dectaper
