Data compiled by ADP and Moody's Analytics showed that private US payrolls increased by 253,000 in May, topping the consensus estimate of analysts of anticipating private payroll growth of 185,000.
The ADP report is a precursor to the official nonfarm payrolls figures reported by the Bureau of Labor Statistics which are due later in the session, with positive job creation momentum expected. A Reuters survey of economists is forecasting the addition 185,000 jobs last month, down from April’s 211,000 new positions.
After a string of downbeat economic data points reduced the likelihood of action, a stronger than projected nonfarm count should revive expectations of a rate hike in June from the Federal Reserve.
If the jobs report comes in particularly strong, speculators might also be tempted to unwind significant positions that involved buying the Yen, lifting the greenback further after USDJPY reached a one-week high before a brief pullback.
Upbeat Data Lifts Greenback
Daily Analysis - 02/06/2017