U.S ADP Report- Market Never Fails to Surprise Us!
Dave Green • 1 min read
The U.S labor market never fails to surprise us. Economists were not expecting such a dramatic increase in the private sector employments, but the U.S labor market performed exceptionally. The Dollar Index surged and crossed above $102 barrier, adding +0.18% in a single trading day.
Surprises, like this one, always fails the technical analysis. That’s why it’s highly recommended to follow strict money management strategies and try to drag your stops into the positive territory once your trades are in profit. Our USD/JPY trade blow off by the great ADP employment report. However, the Forex Signals suggested in the Morning Brief helped us secure some green pips. At the movement, the Dollar index has gone overbought and we may see pullbacks in the currency pairs.
What's Next to Expect?
Confirmed Rate Hike Sentiment: Recalling the Fed Chair Yellen remarks where she emphasized that they surely will hike the rates if labor market figures keep getting better. Private sector employment increased by 298,000 jobs from January to February, what else they need?
Nothing can be that good… Right!!
So the investors have increased their bets on the March rate hikes and already jumping in to take the maximum benefits before the actual release.
Friday’s NFP Non-Farm Employment Change: Now, we can expect a stronger greenback until Friday because investors will increase the demand for the single currency Dollar. As we know, there is a positive correlation between the ADP Employment Change and the NFP Employment Change. The U.S Bureau of Labor Statistics will release NFP and unemployment rate at 13:30 GMT on Friday.