Weak ADP Report Exerted Pressure on US Dollar

Market Reviews

Japanese yen remains the strongest one, followed by European major currencies. British pound shows limited movements. Sterling holds above the 1-1/2-year low, as concerns about how the British parliament will vote for the Brexit deal of Prime Minister Theresa May next week, prompted investors to stand aside.

The US dollar is trading lower after today’s data. US ADP report showed only 179k growth in private sector jobs in November, down from 225k and missed expectation of 200k. US initial jobless claims dropped -4k to 231k in the week ending December 1, above expectation of 226k. Continuing claims dropped -74k to 1.631M in the week ending November 24.

US trade deficit came in at USD -55.5B in October, slightly wider than expectation of USD -55.2B. Non-farm productivity was revised down to 2.3% in Q3 and unit labor cost revised down to 0.9%.

British Prime Minister Theresa May tried to play down the chance of delaying the Brexit vote in the parliament on December 11. She added what she’s doing is leading up to the vote, rather than talking about delaying it. Theresa May said that there are three options for the MPs. The first one is leaving EU with a deal, that is her deal. Second is leading EU with no deal. And the final one is having no Brexit at fall. She also insisted that if the deal is voted down, it’s up for those who opposed to propose a plan.

Chinese Commerce Ministry spokesman Gao Feng stated that the meeting between Xi and Trump in Argentina was “very successful and has reached important consensus on economic and trade issues.” He added both countries have “high degree of interest in economic and trade issues and have natural and complementary structural need”. Gao also explained that the agreement will start with agricultural products, energy, automobiles. And both sides would “immediately implement specific issues that the two sides have reached consensus.”