When is the US ADP jobs report and how could it affect EUR/USD?

US ADP jobs report overview

Wednesday's US economic docket highlights the release of the ADP report on private-sector employment, scheduled at 12:15 GMT. Economists expect another strong report, indicating that private-sector employers added nearly 700K new jobs for the second successive month in July.

Eren Sengezer, Editor at FXStreet, offered his view on the report and explained: “Considering how the service sector employment made up the majority of job gains in June, an increase in manufacturing jobs might not be able to offset a decline in service sector jobs and cause the ADP Employment Change to post a lower-than-expected print.”

How could the data affect EUR/USD?

Ahead of the key release, the EUR/USD pair dropped to multi-day lows, though a subdued US dollar price action helped limit the downside. A disappointing report might be enough to prompt some selling around the USD. Conversely, a stronger-than-expected print is more likely to be overshadowed by firming expectations that the Fed will wait for a longer period before slowing its massive monetary support. This, in turn, suggests that the path of least resistance for the US is down, which should assist the pair to regain some positive traction. That said, any immediate market reaction should be limited as the focus remains on Friday's release of the closely-watched US monthly jobs report – popularly known as NFP.

Yohay Elam, FXStreet's own analyst, offered a brief technical outlook for the major: “Momentum on the four-hour chart turned to the downside, a bearish sign. On the other hand, EUR/USD is holding above the 200 Simple Moving Average, which converges with the 1.1850 level – a resistance line from mid-July. That is the critical support line.”

Yohay also offered important technical levels to trade the EUR/USD pair: “Below 1.1850, the next cushion is at 1.1830, which was a swing high in late July. It is followed by 1.1770 and 1.1750 – the latter being last month's low. Euro/dollar resistance is at 1.1910, the July high, followed by 1.1945, 1.1975 and 1.2015.”

Key Notes

  •  US ADP Employment Change July Preview: Jobs gains in service sector to slowdown

  •  EUR/USD Forecast: Can the euro hold above support confluence? Three US events hold the key

  •  EUR/USD Price Analysis: Something for everyone

About the US ADP jobs report

The Employment Change released by the Automatic Data Processing, Inc, Inc is a measure of the change in the number of employed people in the US. Generally speaking, a rise in this indicator has positive implications for consumer spending, stimulating economic growth. So a high reading is traditionally seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD jumps to three-week highs near 1.1650 amid falling dollar, yields

EUR/USD is trading close to 1.1650, recovering ground to clinch three-week highs. The pair cheers risk-on mood-led decline in the US dollar. Treasury yields pullback, as poor US industrial data tempers hawkish Fed’s expectations. Focus on ECB and Fedspeak.


GBP/USD extends rally beyond 1.3800 on USD selloff

GBP/USD extended its rally in the European trading hours and reached its strongest level in a month above 1.3800. The broad-based selling pressure surrounding the greenback and the BoE rate hike expectations ahead of UK CPI data fuel the pair's upside.


XAU/USD targets $1791 on turnaround Tuesday

Gold price jumps 1% as the US dollar keeps losing ground across the board. Retreat in Treasury yields, risk-on mood aid the rebound in gold price. 

Gold News

Bitcoin open interest skyrockets as investors prepare for BTC price at $250,000

The open interest of Binance and CME Bitcoin futures hit a record high of $9.2 billion when combined. Bitcoin investment products saw an inflow of over $70 million last week, ahead of the ETF approval by the SEC.

Read more

Netflix (NFLX): Will Q3 earnings after the close be enough?

Netflix (NFLX) shares continued to perform strongly on Monday with results just around the corner. The stock has been very strong for some time, setting new all-time highs on the back of the global success of Squid Game.

Read more