US ADP Employment falls by more than expected. Dollar gains today in Currency Trading. | CountingPips Forex Blog

December 3, 2008 - Forex Economic News

US ADP Employment falls by more than expected. Dollar gains today in Currency Trading.

U.S. employment data was released today in the form of the ADP National Employment Report and the report showed a decrease of 250,000 jobs for the October to November timeframe and surpassed market expectations. This decrease follows the September to October revised USD gains in currency trading decline of 179,000 jobs. The decrease in the November jobs report was more than the approximately 205,000 jobs that market forecasts were expecting.

The goods-producing sector showed the biggest decline with a loss of 158,000 jobs while the service-providing sector lost 92,000 jobs in November. Manufacturing registered its 27th month in a row of employment decline with a loss of 118,000 jobs while construction jobs decreased by 44,000 workers. All sizes of businesses lost jobs in the month as small businesses decreased by 79,000 jobs while medium-sized businesses and large businesses shed 130,000 workers and 41,000 workers, respectively.

The ADP decrease in jobs does not bode well for the Non-farm payrolls release scheduled for Friday at 13:30 GMT. Last month, the non-farm payrolls shed 240,000 jobs and the market forecasts are expecting November's payrolls to decline by approximately 325,000.

ISM Non-Manufacturing data contracts in September.

U.S. non-manufacturing business activity fell by 7.1 points in November according to a report released today by the Institute for Supply Management. The Non-manufacturing Index(NMI) showed a score of 37.3 percent in November following a score of 44.4 in October and marks the second straight month of contraction in the non-manufacturing sector.

The NMI equally weights the index scores of business activity, new orders, supplier deliveries and employment. A score below 50 is considered contracting or declining.

The business activity index score dropped by 11.2 points to a 33 percent score in November. This was down from a 44.2 percent score in October and a contracting score for the second straight month. New orders fell by 8.6 points to register a 35.4 percent score and down from 44.0 percent in October.

The Employment Index fell to 31.3 percent in November from 41.5 percent in October and declined for the seventh month in a row. Supplier deliveries scored 49.5 percent, an increase from 48.0 percent in October and the only sector of the report to show an increase for the month.

US Dollar gains in Currency Trading.

The dollar has made gains in currency trading today despite the dismal economic news releases today as the U.S. currency has gained against the pound, euro, loonie, aussie, kiwi and Swiss franc while declining verses the yen.

The euro has been weaker verses the dollar today as the EUR/USD has declined from its 1.2700 opening(00:00 GMT) to trading at 1.2658 in the afternoon of the U.S. trading session at 1:50pm ET.

The British pound has fallen today as the GBP/USD has shed approximately 145 pips from its 1.4876 opening exchange rate to trading at 1.4728 usd per gbp. The dollar has fallen verses the Japanese yen and trading at 92.82 after opening at 93.27. The dollar has advanced today verses the Canadian loonie as the USD/CAD trades at the exchange rate of 1.2611. The USD/CAD has gained roughly 95 pips from its 1.2516 opening.

The dollar has gained against the Swiss franc as the USD/CHF trades at 1.2113 after opening at 1.2093 today while the dollar has also been stronger against the Australian dollar and New Zealand dollar. The AUD/USD trades at 0.6412 after an 0.6454 opening while the NZD/USD trades at 0.5287 today after opening at the exchange rate of 0.5295.

USD/CAD Chart - The US dollar advancing vs. the Canadian dollar in currency trading today despite a few dismal economic news releases(1 Hour. Chart).

Today's Forex Chart

tags: adp, employment, non-manufacturing data, currency trading, forex, jobs

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