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3 Jul 2014
All eyes on US Payrolls today - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, underlines today's US labour market reports.
Key Quotes
"A strong UK June Construction PMI figure was the catalyst for another new 2014 high in GBPUSD yesterday, with the pair soaring towards 1.7200 post the release as we continue to grind higher every day. In GBPEUR there was also a new 2014 high as we traded into the high 1.25’s yesterday after the release."
"In the afternoon we finally got some decent US data with the ADP National Employment report showing private jobs increased by 281,000 jobs, the highest level of job creation since the end of 2012. Many analysts have lifted their Non Farm Payrolls (NFP) predictions for today based on the reading, as ADP has been underestimating NFP numbers by around 30k jobs in the last few months."
"It’s worth noting it has been reported that there has been some ‘dodgy seasonal’ adjustments going into the numbers and this is skewing the risk to the downside for the release, although a print over 200k would still be a good result showing five straight months in a row over 200k. The USD staged a relief rally of sorts after the ADP that continued overnight in the G7 space, particularly against the Australian dollar."
Key Quotes
"A strong UK June Construction PMI figure was the catalyst for another new 2014 high in GBPUSD yesterday, with the pair soaring towards 1.7200 post the release as we continue to grind higher every day. In GBPEUR there was also a new 2014 high as we traded into the high 1.25’s yesterday after the release."
"In the afternoon we finally got some decent US data with the ADP National Employment report showing private jobs increased by 281,000 jobs, the highest level of job creation since the end of 2012. Many analysts have lifted their Non Farm Payrolls (NFP) predictions for today based on the reading, as ADP has been underestimating NFP numbers by around 30k jobs in the last few months."
"It’s worth noting it has been reported that there has been some ‘dodgy seasonal’ adjustments going into the numbers and this is skewing the risk to the downside for the release, although a print over 200k would still be a good result showing five straight months in a row over 200k. The USD staged a relief rally of sorts after the ADP that continued overnight in the G7 space, particularly against the Australian dollar."