Weak ADP employment would push dollar further down

ADP employment data to be released at 12:15 GMT is today's most vital dockets to be watched by market participants.

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 189,000 in March, lowest since May last year.
• Small business sector hiring at 108,000.
• Employment in franchise increased by 20,000.
• 1000 jobs were lost in manufacturing sector.

Expectation Today -

• Market is expecting another solid job growth with average expectation is 200,000 to be the headline number.
  
• Manufacturing sector payroll change would be vital to gauge if stronger dollar is posing headwinds for the industry.

Market Impact -

• Dollar index is currently trading at 94.8, weaker data would push it lower towards 94 level. Euro could be the biggest beneficiary of weak dollar over employment report.