ADP employment review –

ADP employment data to be released at 13:15 GMT is today's top data watch from USA.

What is ADP employment?

• The report is a measure of non-farm private sector employment which is obtained by utilizing an anonymous subset of roughly 400,000 U.S. businesses which are clients of ADP.

• This data is a very good measure of employment strength of the economy and a good precursor of Nonfarm payroll data.

Previous performance -

• Non-farm private sector employment grew at 213,000 last month.
• Small business sector hiring at 78000.
• Employment in franchise increased by 26,000.
• ADP data is broken down by sectors in chart that shows construction and the service industries job growths are among highest whereas manufacturing and financial activities lag behind. Employment in recent time started picking up in trade and utility sector.

Expectation Today -

• Market is expecting another solid job growth with average expectation is 220,000 to be the headline number.
• Construction and utility sector would be vital to watch in the midst of falling commodity prices.

Market Impact -

• Treasuries are the securities to watch as stronger report could push the yields further.
• In such case dollar might also show some strength though it is expected to be mixed among the pairs. Lots of pairs are either trading at support or resistance. Dollar index is currently trading at 95. 71 up 0.4 percent for the day.