ADP employment preview

ADP employment data to be released at 12:15 GMT is today's most vital dockets from US to be watched by market participants. Last FOMC comments makes it ever more crucial

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 237,000 in June, highest since December last year. In May payroll grew by 203,000.
• Small business sector hiring at 120,000.
• Employment in franchise increased by 28,800.
• 7,000 jobs were added in manufacturing sector.
• 12000 jobs were added in goods producing sector.
• Construction sector added 19,000 on payroll.
• Services sector is main job provider. Payroll added 225,000 people in May.

Expectation Today -

• Headline number is expected to drop to 215,000 as per median estimate.

Market Impact -

• Any gain above 200,000 is considered to be good and Dollar will gain extra momentum if number beats expectations. However large sustained push unlikely ahead of NFP report Friday.
  
  
• With Atlanta FED president Dennis Lockhart's comments Dollar is unlikely to weaken much unless headline number falls below 170,000.

FXCM US Dollar index is currently trading at 12030. Range high remains around 12060 and low around 11980.