Talking Points:

-ADP Employment Change comes in at 238K vs. 200K surveyed

-prior print revised higher to 229K from 215K prior

-US 10yr yields rise from 2.955% to 2.9819% following the print

December’s ADP Employment Change print followed November in a major beat and sent US Treasury yields and the greenback higher. The print for December was the single best print since December of 2012 when the figure came in at 209K. In addition, November’s print was revised higher to 229K from 215K reported last month.

The ADP Employment Report is published monthly and provides a snapshot of the U.S. job market by measuring transactions on U.S. payroll data.

USD/JPY (1-Minute Chart)

Strong_ADP_Employment_Figures_Send_USD_Yields_Higher_body_Picture_2.png, Strong ADP Employment Figures Send USD, Yields Higher

Source: FXCM Marketscope

The better than expected employment change figures sent US 10yr yields back above 2.98% after trading at 2.954% just before the release. USD/JPY saw a spike near the 105 figure, but the pair slightly pulled back as market participants await Fed event risk later today and US Non-Farm Payrolls on Friday.

Strong_ADP_Employment_Figures_Send_USD_Yields_Higher_body_Picture_1.png, Strong ADP Employment Figures Send USD, Yields Higher

Gregory Marks, DailyFX Research Team

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