US private sector employment rises 107,000 in January vs. 145,000 expected

Private sector employment grew at a softer pace than expected in January.
US Dollar Index continues to fluctuate near 103.50 ahead of the Fed policy announcements.

Eren Sengezer FXStreet

Private sector employment in the US rose by 107,000 in January, while annual pay was up 5.2% year-over-year, the data published by Automatic Data Processing (ADP) showed on Wednesday. This reading followed the 158,000 increase (revised from 164,000) recorded in December and came in below the market expectation of 145,000.

Commenting on the survey's findings, "progress on inflation has brightened the economic picture despite a slowdown in hiring and pay," said Nela Richardson, chief economist, ADP. "Wages adjusted for inflation have improved over the past six months, and the economy looks like it's headed toward a soft landing in the US and globally."

Market reaction

This report don't seem to be having a noticeable impact on the US Dollar's valuation ahead of the Federal Reserve's highly-anticipated monetary policy announcements. At the time of press, the US Dollar Index was virtually unchanged on the day at 103.42.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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