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End of week ADP surprise
ADP sees a notable rise by 497K vs 226K expected
June ADP National Employment Report: Private sector employment increased by 497,000 jobs, and annual pay rose by 6.4% year-over-year.
The dollar recovered after positive private payrolls report, indicating a strong U.S. labor market.
BOE anticipated hikes could lift the pound to 1.28 again.
What’s going on markets!
- ADP surprises
In June, private sector employment experienced a notable rise of 497,000 jobs, while the annual pay witnessed a 6.4 percent year-over-year increase, as reported by the June ADP® National Employment Report
- The currency market
On Thursday, the dollar managed to recover from earlier losses and traded relatively unchanged against other major currencies. This came after a private payrolls report indicated that the U.S. labor market continues to exhibit strength. However, the number of Americans filing for unemployment
the pound was last seen attempting to hold steady near the 1.27 mark. The ongoing debate around the necessary measures the Bank of England should take to curb inflation was supporting the currency in early European trading but after the dollar found support after the data, the pound was last seen facing pressure.
Markets are now pricing in two additional interest rate hikes from the BOE, while others cautioned that multiple hikes might be required. In this context, the GBP/USD pair declined by 0.07% to near $1.2702.
The precious metal
Gold price has sensed selling pressure while attempting to sustain above the crucial resistance of $1,920.00 in the European session. The precious metal is struggling to attract bets as Fed policymakers remained hawkish on interest rate outlook.
The precious metal failed to sustain above the downward-sloping trendline plotted from May 03 high at $2,079.76 And is now witnessing intense selling pressure after the ADP data surprise.
