ADP Employment Change Misses Estimates Ahead of Non-Farm Payrolls
- ADP Employment Change for July comes in at 185K vs 215K estimate
- USDJPY falls in the near-term before finding support and stemming losses
- US Non-Farm Payrolls Report due on Friday August 7
The ADP Employment Change for July had a 185K print vs 215K estimate by Bloomberg News economists. The change represents a -52K decrease from June, which saw a 237K read – and significantly beat market expectations. The ADP Employment Change report precedes the Non-Farm Payrolls, which is considered the foremost employment indicator for the US.
USDJPY experienced an immediate downward move at 12:15GMT – when the data was released. The pair was trading at ¥124.227 before falling to ¥124.027 on the back of the weak data. The pair found support at ¥124.008 and surged shortly after erasing the losses on the weak employment data. The pair is currently trading at ¥124.305 at the time of writing.
The ADP Employment Report measures non-farm private employment and is based on payroll data from all North-American private sectors. Economists use the report as a timely and accurate source for changes in the labor market. ADP Employment precedes the Non-Farm Payrolls report – due on Friday August 7 – as market participants are sure to price July’s weak ADP Employment ahead of the NFP.
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