U.S. employment data was released today in the form of the ADP National Employment Report with the report showing a decrease of 522,000 nonfarm private jobs for January compared with December. Today’s employment report follows the November to December revised decline of 659,000 jobs. The decrease in January jobs, despite numbering over half a million, was better than market forecasts that were expecting a bigger decline of 535,000 jobs.
The service-providing sector showed the largest decline for the month with a loss of 279,000 jobs while the goods-producing sector fell by 243,000 jobs. The manufacturing sector registered its 28th month in a row of employment decline with a loss of 160,000 jobs while construction jobs fell for the 22nd straight month with a decline of 83,000 workers. All size of businesses slashed jobs in January as large businesses lost 92,000 jobs, medium sized businesses shed 255,000 jobs and small businesses dropped 175,000 jobs.
The widely watched US Nonfarm Payrolls report for January is to be released this Friday at 13:30 pm GMT with market forecasts predicting a decline of 535,000 jobs after December’s 524,000 decrease.
ISM Non-Manufacturing data contracts in January.
U.S. Non-Manufacturing economic data, released today by the Institute for Supply Management, showed that non-manufacturing economic activity failed to grow in January for the 4th straight month. September’s ISM Report On Business index readings for economic activity were at 42.9 percent following December’s 40.1 percent level. The January score was better than economic forecasts which were expecting the ISM index reading to register 39.1 percent but were still in contraction territory. A score above 50 is considered to be growth and less than 50 is considered to be contraction in that sector.
Almost all of the economic sectors tracked for January showed contracting index scores with the exception of supplier deliveries which stands at a 51.5 percent score. New orders, business activity, production, employment, inventories, customer inventories, prices and the backlog of orders all showed continued contracting levels for January. Notably, the exports index showed negative growth for the 3rd straight month with a 0.5 percent decline while the imports index also contracted for the 3rd month in a row despite a 8.0 percent increase in January.
U.S. Dollar mixed in Forex Trading.
The U.S. dollar has been mixed in forex trading today against the major currencies. The dollar has gained against the euro, Australian dollar, Swiss franc and New Zealand dollar while falling versus the Canadian dollar and British pound.
The euro has fallen versus the dollar as the EUR/USD has declined from today’s 1.3006 opening(00:00 GMT) to trading at approximately 1.2851 in the afternoon of the US trading session at 1:54pm EST. The British pound has declined today versus the dollar from 1.4393 dollars per pound to trading at 1.4448 dollars per pound. The dollar is trading virtually unchanged against the Japanese yen today as the USD/JPY trades at 89.59 after opening at 89.57.
The dollar has fallen slightly against the Canadian dollar after opening at 1.2316 earlier today to trading later at 1.2310. Against the Swiss franc, the USD has gained ground from the 1.1464 opening to trading at 1.1605.
The New Zealand and Australian dollars are both falling against the US dollar from their opening exchange rates. The NZD/USD currently trades at 0.5075 after opening at 0.5111 while the AUD/USD trades at 0.6460 after opening today at 0.6476.
USD/CHF Chart – The US Dollar advancing today against the Swiss Franc in Forex Trading and advancing above the 55-day moving average(red).