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Stronger than expected ADP jobs data and ISM manufacturing PMI gave the U.S. dollar a bit of a boost ahead of this week’s NFP release.

  • ADP non-farm employment up 253K vs. 181K forecast in May
  • ISM manufacturing PMI rose from 54.8 to 54.9 vs. 54.7 consensus
  • U.S. initial jobless claims at 248K vs. 239K forecast, 235K previous
  • U.S. crude oil inventories down by 6.4M barrels vs. projected 2.7M drop
  • President Trump: U.S. to withdraw from Paris climate accord

Major Events/Reports

Mostly upbeat U.S. data

Dollar traders seem to be getting their hopes up for a strong NFP reading this week as the ADP report and ISM survey printed upside surprises.

The ADP non-farm employment change reading for May came in at 253K versus the projected 181K reading and up from the earlier 174K figure. Components of the report indicated that the gains were mostly from the services sector, led by professional and business services.

Meanwhile, the ISM manufacturing PMI ticked up from 54.8 to 54.9 to reflect a faster pace of industry expansion instead of dipping to 54.7. The employment component increased from 52 to 53.5 to indicate a pickup in hiring activity for the month, but the index for prices edged down from 68.5 to 60.5 to show cooling inflationary pressures.

Risk appetite in play?

Wall Street seems to have reacted positively to President Trump’s decision to withdraw from the Paris climate accord as indices closed at record highs.

The Donald declared that the U.S. will cease implementation of non-binding elements of the Paris agreement as of today since this has proven to be a disadvantage for many companies. He said that it takes jobs away from the country and is unfair to America at the highest level.

Trump also said that the government is prepared to renegotiate a deal that would make burdens and responsibilities equally shared among nations. Despite negative press #covfefe, he did say that he’s ready to sit down with the Democrats to come up with a new plan.

  • S&P 500 index is up 17.25 points to 2,429.05 (+0.72%)
  • Nasdaq is up 48.31 points to 6,246.83 (+0.78%)
  • Dow 30 index is up 135.53 points to 21,144.18 (+0.65%)

Major Market Mover(s):

USD

The Greenback was lifted by both leading jobs indicators and a strong close for the U.S. stock market.

EUR/USD dipped from 1.1235 to a low of 1.1206, USD/JPY advanced from 111.07 to 111.50, USD/CHF is up from .9692 to a high of .9720, and AUD/USD dropped from .7403 to .7374.

Watch Out For:

  • 2:00 am GMT: Australian HIA new home sales (-1.1% previous)
  • 6:00 am GMT: Japanese consumer confidence index (43.6 expected, 43.2 previous)