USD Weakens as ADP Employment Report Disappoints
- US employment rose less than expected in June, according to the latest ADP report.
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Private sector employment increased by 158,000 jobs from May to June according to the June ADP National Employment Report, missing expectations of 185,000 jobs, while the May total of jobs added was revised down from 253,000 to 230,000.
Despite the miss the US jobs market remains firm, with the labor market continuing to tighten.
“Despite a slight moderation in the month of June, the labor market remains strong,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “For the month of June, jobs were primarily created in the service-providing sector.”
The USD fell further against the EUR, although further losses may be tempered ahead of Friday’s non-farm payroll report. The USD fall against the EUR was also aided by the recent release of mildly hawkish ECB minutes which powered the single currency higher.
Chart: EURUSD 5-Minute Timeframe (July 6, 2017)
And Friday brings the closely watched monthly non-farm payroll report, with expectations of 173,000 jobs added in June against May’s 147,000 print. To get upto date views, trading opportunities and instant reaction to the release, join DailyFX analysts David Song, Michael Boutros and Tyler Yell for live coverage here
--- Written by Nick Cawley, Analyst
To contact Nick, email him at email@example.com
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