US ADP Report: Dollar weakens on materially weak report

Today ADP employment numbers were released from the US for the month of May.

ADP number shows the US labor markets might be signaling some stress though the report has been quite volatile lately.
 

There are two things to note in the headline that,

• ADP report indicates that the economy is showing strains amid trade disputes with the rest of the world.

• April payroll saw a revision, where the headline was revised down to 271,000 (from 275,000).
   

Key highlights –

• Non-farm private sector employment grew at 27,000 in May, the median expectation was for 180,000.
• The small business sector lost 52,000 jobs, compared to 77,000 gain last month.
• Mid-sized companies added 11,000 jobs compared to last month’s 145,000 jobs.
• The large sector added just 68,000 compared to last month’s 53,000 jobs.
• Manufacturing sector payroll registered 3,000 jobs loss compared to 5,000 jobs gain last month.
• 43,000 jobs were lost in the goods-producing sector, compared to last month’s 52,000 jobs gain.
• Construction sector lost 36,000 jobs, compared to last month’s 49,000 jobs gain.
• The services sector remains the main job provider as payrolls added 71,000 people in May. April gain was 223,000.

The USD selloff has significantly accelerated with USD trading at 96.8, down 0.33 percent for the day, as the labor market seem. This is the weakest level for the USD since early April.