ADP points to another good jobs report on Friday

Published date: 08/01/2020

US ADP Nonfarm Employment Change (Dec) 202K 160K

Once again there is good jobs data from the US and after last months bumper NFP result it seems that labour market is in full flow.

The key trading theme for the day continues to be the conflict between the US and Iran after the Iranian attack on an American Iraqi military base. It is not yet known if there were any casualties but this move has been seen as a de-escalation of tensions as it was a targeted attack to not make mass casualties. 

Moving back to the US economy, the Fed are watching data closely and the equities markets are looking for more excuses for the Fed to cut rates or ease more. These cues do not seem to be coming and a strong NFP result could compound that. 

The DXY has pushed higher today and trades above 97 with EUR/USD dropping closer to 1.11. This can be due to safe haven flows but the added news of good data from the US is compounding these moves. A small mention has to be made about gold as it has really pulled back from the highs seen overnight. As there is a negative correlation between the precious metal and the US this can also help with the bullishness seen in the greenback.


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