Non-farm Payrolls smashed expectations today. This was one of the few occasions that the release of the ADP private payrolls ultimately gave a very strong indication to the Non-farms (This will also mean that next month’s ADP will be very closely watched).
Non-farm Payrolls jumped by 288,000 jobs in June (ADP shows a 281,000 rise) which was significantly higher than the 212,000 jobs that had been forecast by the consensus. However this is not the only strong element to the report. Unemployment fell to 6.1% unexpectedly below the 6.3%, whilst the average hours worked was in line with forecast and the monthly wage growth was also in line with the 0.2% month on month growth forecast. This payrolls report will put pressure on Janet Yellen who remains on the dovish side in her comments (although she did yesterday mention the potential impact of lower volatility expectations).
This is all dollar positive and the forex majors have all moved with that in mind. This means that the dollar has broken through some key support levels today. This means it is time to restate the new support levels moving into the afternoon.
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