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1:16 PM · 30 August 2023

BREAKING: USD drops after ADP miss

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US ADP employment report for August was released today at 1:15 pm BST. As always, data was closely watched given that it is one of final hints ahead of the release of the NFP report for August - official US jobs data (Friday, 1:30 pm BST). Market expected ADP report to show a jobs gain of 195k - much lower than 324k in ADP report for July and a touch above 187k reported in NFP report for July.

Actual report showed an addition of 177k jobs in July - slightly weaker than expected. While the miss was small, it should be noted that this was the lowest ADP reading in 5 months. Moreover, it adds to concerns over the condition of the US labor market, following release of disappointing JOLTS data. Having said that, dovish reaction on the markets should not come as surprise - USD is pulling while equity markets moved higher. EURUSD reaching fresh daily higher near 1.09 mark while US500 moved back above 4,500 pts mark.

EURUSD jumped following release of ADP data and tested 1.09 mark. Source: xStation5

 

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