ADP employment report for January was released today at 1:15 pm GMT. As a final hint ahead of the NFP release this Friday (1:30 pm GMT), the report was closely watched by investors. However, as today is also a FOMC decision day (7:00 pm GMT), one should not be surprised by the lack of major reaction to the news.
Report showed an employment gain of just 106k, a significant miss compared to market expectations of 178k. December reading has been upwardly revised to 253K. ADP noted that employment was soft during the January 12 reference week as the US was hit with extreme weather. Hiring was stronger during other weeks of the month, in line with the strength seen late last year. The services sector added 109K jobs, led by leisure and hospitality (95K), financial activities (30K), education/health services (12K), professional/business (8K) and information (5K) while trade/transportations and utilities lost 41K jobs. Meanwhile, the goods-producing industry lost 3K jobs due to construction (-24K) and mining (-2K) while the manufacturing sector added 23K.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Sentiment in the industrial sector is deteriorating. Source: ADP
It is the lowest reading since January of 2021 when businesses shed 109K jobs. Source: Bloomberg via ZeroHedge
Pay growth for job stayers held at 7.3% for the second month. Source: Bloomberg via ZeroHedge
Today’s reading reinforces bets that the FED will ease the tightening process in the near future as the labour market shows signs of weakness.
EURUSD pair broke above 1.0900 level. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
