05/01/2018 - US Private Sector adds 250,000 jobs in December

USD

The Dollar gained after the non-farm ADP figure revealed U.S. private employers added 250,000 jobs in December, marking the biggest monthly increase since March. Reports suggested job creation surged in December as a strong holiday shopping season pushed companies to hire more workers.

The total brought 2017's private payroll growth as gauged by ADP and Moody's to 2.54 million, an average of 212,000 a month. The private payrolls numbers come a day ahead of the governments closely watched nonfarm payrolls report.

GBP

The Pound struggled early on yesterday after a survey revealed Brexit continued to weigh on the UK’s dominant services sector in December. The figure disappointed the markets as the implied rate of services job creation slipped to its lowest in nine months and cost inflation hit its highest since September.

Purchasing managers reported uncertainty related to Britain’s departure from the EU continued to deter their clients from investing at the end of last year. However, the overall Purchasing Managers’ Index (PMI) strengthened to 54.2 from 53.8 previously, with any reading over 50 signalling growth.

Key Announcements

10:00 – EUR - CPI Flash Estimate: Expected to fall to 1.4%

13:30 – USD - Average Hourly Earnings m/m: Forecast at 0.3%

13:30 – USD - Non-Farm Employment Change: Expected to decrease to 188k

13:30 – USD – Unemployment Rate: Forecast to remain at 4.1%