-January US ADP Employment Change release comes in at 175K vs. 185K estimates
-December figure revised from 238K to 227K
-USD spike followed by moves to the downside
The January figure for the ADP Employment Change print came in at 175K vs. 185K estimates while December’s figure saw a slight downward revision from 238K to 227K. It is important to note that the ADP survey is not necessarily indicative of what we will see at Friday’s Non-Farm Payroll release. For example, last month we saw that the release indicated a 238K positive net change and that beat expectations of 200K for December. Nevertheless, on that following Friday we saw NFPs come in at a dismal 74K.
USD/JPY: February 5, 2014 (5-Minute Chart)
Source: FXCM Marketscope
As is usually the case, the ADP Employment Change release is good for at least a 20 pip move in USD/JPY. In most cases, we have seen this move retrace within a five minute candle as was the case today. S&P 500 futures are heading lower with USD/JPY ahead of the open and US 10yr yields are pressing fresh intraday lows, currently testing 2.6% at the time of this report. As for event risk for the rest of the day, we have ISM Non-Manf. Composite for January due out at 15:00GMT.
Gregory Marks, DailyFX Research Team
Keep up to date on event risk with the DailyFX Calendar.