Traders and dealers alike will be using today to prepare for tomorrow’s crucial NFP release. The bulls were dealt a blow yesterday after a US report showed private-sector jobs growth in August fell well short of expectation. The ADP report was forecast to print around the 613,000 mark. Instead, the headline number only hit 374K. The greenback immediately sold off while stocks edged lower.
Even though the correlation between ADP data and non-farm payrolls has diminished in recent years, this still raises solid concerns about how good Friday’s report may be. A soft report and the greenback will take a big hit. The Fed would most likely be pushed into delaying tapering in September and taking and an extra month to observe the economy.
Have a good day.
Written by Viv Savani. 8:35am, September 2nd 2021
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.