ADP Employment Up Next
Aside from the ISM manufacturing print for August, the other key data release today will be the ADP Non-Farm employment change number. The release is typically used as a gauge for trading the NFP release (which follows on Friday) and, as such, can cause plenty of market volatility. On the back of the bumper jobs report last month, there is plenty of attention on Friday’s release, so any surprises today hold the potential for big market moves.
With that in mind, the market is looking for a 640k result, up from the prior 330k reading. If such an increase is confirmed this could send USD sharply higher into Friday, lifting expectations for the NFP. This might especially be the case since the market Is looking for the NFP to fall back to 750k from the prior month’s 943k reading. On the other hand, if today’s number misses the mark, this might further encourage expectations of a weaker number on Friday, sending USD lower as a result.
Where to Trade the ADP Release?
USDJPY
The triangle pattern which has framed the recent correction and consolidation in USDJPY is now threatening to break with price testing the upper trend line. With indicators turning higher here, the long term bullish trend looks set to continue if price can breakout. The key level to watch will be the 110.92 level, a break above that level will put the 111.70 level in focus next and above there, fresh highs.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.