US ADP Employment, Manufacturing decrease, Dollar gains vs. Euro, Pound. | CountingPips Forex Blog

October 1, 2008 - Forex Economic News

US ADP Employment, Manufacturing decrease, Dollar gains vs. Euro, Pound.

U.S. employment data was released today in the form of the ADP National Employment Report and the report showed a decrease of 8,000 jobs for September from August. This follows the July to August revised decline of 33,000 jobs. The decrease in September jobs surpassed market forecasts that were expecting a decline of 50,000 jobs.

USD gains in Forex Trading The goods-producing sector showed the biggest decline with a loss of 72,000 jobs while the service-providing sector provided a boost to the employment numbers with a gain of 64,000 jobs in September. Manufacturing registered its 25th month in a row of employment decline with a loss of 48,000 jobs. Small businesses managed to create 28,000 jobs in September while medium-sized businesses shed 30,000 workers and large businesses shed 6,000 workers.

ISM Manufacturing data contracts in September.

U.S. Manufacturing data, released today by the Institute for Supply Management, showed that manufacturing activity failed to grow in September for the second straight month and fell to its lowest level since 2001. September's ISM Report On Business index readings for economic activity were at 43.5 percent following August's 49.9 percent level. The September score was worse than economic forecasts which were expecting the ISM index reading to register 49.5 percent. A score above 50 is considered to be growth and less than 50 is considered to be contraction in that sector. The report showed that the overall economy grew for the 83rd straight month despite the manufacturing contraction.

Norbert J. Ore, chair of the ISM Business Survey Committee, stated in the report that, "The PMI indicates a significantly faster rate of decline in manufacturing during September, marking a departure from the 2008 trend toward negligible growth or contraction each month. This is the lowest level for the PMI since October 2001. This month's report is showing prices rising at a much slower rate, as the Prices Index fell to the lowest level in 21 months. Export orders continued to increase, but at a slower rate than in August."

Almost all of the manufacturing sectors tracked for September showed contracting scores with the execption of supplier deliveries which grew by 2.2 percent from August. New orders, production, employment, inventories, customer inventories, prices and the backlog of orders all showed decreased readings for September. The exports index, showing positive growth for the 70th straight month, registered a 52 percent score in September while the imports index contracted for the 8th month in a row at a 44 percent score.

U.S. Dollar gains for the 3rd day in a row vs Euro, Pound.

The U.S. dollar continued to show strength in the forex markets today as the American currency has advanced for the third day in a row verses Europe's major currencies. The euro has been tumbling for the third straight day today against the dollar as the EUR/USD pair traded at the 1.4046 dollars per euro level today after opening the day at 1.4092. The British pound is also falling against the dollar for the third straight day. The GBP/USD pair opened today at approximately 1.7805 dollars per pound and is trading at 1.7726 at 3pm ET in the U.S. trading session.

The dollar has gained ground verses the Swiss franc for the second straight day as the USD/CHF pair has advanced from an approximate opening rate of 1.1218 francs per dollar to trading today at the 1.1235 level. The Australian dollar has fallen against the dollar today from the opening at 0.7921 to trading at 0.7885 and is losing ground to the dollar for the 4th day in a row.

The dollar has lost ground today against the Japanese yen after advancing yesterday. The USD/JPY pair has fallen to 105.80 yen per dollar after opening at the 106.09 exchange rate today. The dollar has also lost ground today to the New Zealand dollar and the Canadian dollar as the NZD/USD pair has increased to trading at 0.6719 dollars per kiwi and the USD/CAD pair has fallen to trading at 1.0625 loonie per usd after opening at 1.0641.

USD/CHF Chart - The U.S. dollar gaining ground verses the Swiss franc for the second day in a row(Daily Chart).

Today's Forex Chart

tags: employment, jobs, manufacturing, dollar, forex trading

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