BREAKING: ADP data lower than expected; EURUSD up slightly 📌

01:15 PM BST, United States - Employment Data for July:

• ADP Nonfarm Employment Change: actual 122K; forecast 147K; previous 155K;

In July 2024, the private sector saw an increase of 122,000 jobs, while annual pay rose by 4.8%, as reported by the ADP National Employment Report. This report, produced by ADP Research Institute in collaboration with Stanford Digital Economy Lab, is based on anonymized payroll data from over 25 million U.S. employees. Job growth was primarily in the service sector, which added 85,000 jobs, and the goods-producing sector, which added 37,000 jobs. Pay gains for job-stayers slowed to 4.8%, marking the slowest growth rate in three years, and job-changers saw a pay increase of 7.2%, down from 7.7%.

The data confirm further stabilization in the labor market. The lower-than-expected ADP data may suggest a similar direction for Friday's NFP data. The data is good for the Fed and supports the scenario of first interest rates cut during September meeting. USD ticks lower after the publication.