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US private-sector job growth falls in July to 44K, ADP says
The ADP report missed the 70K expected pace and came ahead of Friday's BLS Nonfarm Payrolls, a key input for Fed rate decisions.
ADP reported that US private-sector employment rose by 44K in July. The figure was below expectations of 70K and followed June’s 98K increase.
The ADP Employment Change release arrives before the US Bureau of Labor Statistics Nonfarm Payrolls report scheduled for Friday, which includes both private and government jobs as well as the unemployment rate.
FXStreet notes that traders often use ADP as an early read on Nonfarm Payrolls, though the two releases are not always aligned. It also said stronger-than-expected employment data typically boosts demand for the US dollar.
In the run-up to the release, attention has also been split with market focus on Middle East tensions and the Strait of Hormuz, developments that have pushed oil prices and the greenback higher or lower based on shifting expectations for the conflict. FXStreet further points out the Federal Reserve’s mid-July decision to hold its benchmark rate at 3.50% to 3.75%.