US ADP Employment Change Preview: Positive numbers to benefit stocks, not USD

Employment is expected to rise for the first time in four months while markets will take positive cues from a strong ADP report, inferring the same for NFP, FXStreet’s analyst Joseph Trevisani reports.

Key quotes

“The clients of Automatic Data Processing, (ADP) the largest US payroll services company are predicted to have employed 3 million new workers in June after firing 2.76 million in May and 19.557 million in April.”

“The increase of coronavirus cases in a number of states that have lifted restrictions has prompted a mild risk-aversion rally in the US dollar over the last two weeks. A stronger than forecast ADP report will allay some of the economic fear behind the rising viral incidence. Equities would certainly benefit from any signs of an improving labor economy, but oddly enough the dollar might not.”