When is the US ADP employment report and how could it affect EUR/USD? – by hareshmenghani Employment UnitedStates Fed EURUSD Currencies
an addition of 200K private-sector jobs during the reported month, up sharply from 109K in January. The data will provide fresh insight into the US labor market conditions and could drive expectations for the official jobs report, popularly known as NFP scheduled for release on Friday.Ahead of the key release, signs of stability in the equity markets hold back traders from placing fresh bullish bets around the safe-haven US Dollar.
Conversely, any disappointment is unlikely to dent the underlying bullish sentiment surrounding the buck as investors might wait for the NFP report to see if the US labor market is cooling down. Hence, any immediate market reaction to a softer print is more likely to be limited, suggesting that the path of least resistance for the EUR/USD pair is to the downside.
As Matías Salord, news Reporter at FXStreet explains: “If ADP shows the private sector employment rose by more than 200K, it would reaffirm the “higher for longer” scenario, offering support to the US Dollar and should be negative for US Treasury bonds. On the contrary, it would take a contraction in employment to weigh on expectations. A negative reading could be positive for equities, emerging market currencies… for all, except the US Dollar.
“On the upside, 1.0560 aligns as initial resistance before 1.0580 . In case the latter resistance fails, buyers could show interest and EUR/USD could extend its correction toward 1.0600/1.0610 on the four-hour chart),” Eren adds further.
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