ADP employment data to be released at 12:15 GMT is today's most vital dockets from US to be watched by market participants.
What is ADP employment?
- The report is a measure of non-farm private sector employment which is obtained by utilizing an anonymous subset of roughly 400,000 U.S. businesses which are clients of ADP.
- This data is a very good measure of employment strength of the economy and a good precursor of Nonfarm payroll data.
Previous performance -
- Non-farm private sector employment grew at 201,000 in May, highest since January. In April payroll grew by 169,000.
- Small business sector hiring at 122,000.
- Employment in franchise increased by 14,700.
- 5,000 jobs were lost in manufacturing sector.
- 9000 jobs were added in goods producing sector.
- Construction sector added 27,000 on payroll.
- Services sector is main job provider. Payroll added 192,000 people in May.
Expectation Today -
- Market is expecting rebound job growth with average expectation is 218,000 to be the headline number.
Market Impact -
- Dollar index which is value of dollar, against basket of currencies is currently trading at 95.82, up 0.31% today so far. Dollar is trading close to crucial support against most major counterparts. Dollar index has resistance around 96 area. A close above the level. Could bring dollar back on gaining track.
- Not major ground breaking impact is expected as Greek referendum remains in focus, however positive ADP report could provide the necessary boost to ADP, heading into tomorrow's NFP job report.