DECEMBER 17, 2020: Family cleans car from snow in Brooklyn, NY after massive Winter Storm Gail. Image source: Leonard Zhukovsky © 123RF.com
Earlier today, the Automatic Data Processing (ADP) employment survey was published in the U.S. It underlines the performance of the U.S. labour market in December.
The findings of the report missed the consensus forecasts, which means that the American economy lost jobs instead of generating new job openings. Market experts were preparing to see 60 thousand new jobs being created compared to November's 304 thousand. Instead, it was revealed that the American labour market had lost 123 thousand jobs over the last month of 2020.
U.S. ADP Employment Numbers. Image source: TradingEconomics.com
As was argued in our Weekly Expectations article, the loss of jobs is owing to the typically subdued demand in December. Meanwhile, this performance marks the first instance of net job losses in a single month since the massive plunge in early-2020.
Interestingly enough, the weaker-than-expected jobs report comes just a day after the release of the surprisingly sold manufacturing PMI data for the same period.
The ADP survey is compiled by the private sector and represents an early precursor to the official Non-Farm Payrolls report that is developed by the government and is due for publication on Friday.
Seeing as how the ADP missed the initial forecasts, market specialists, who will be relying on a solid NFP performance to help the struggling dollar recuperate, might have a reason to be wary.
Nevertheless, the greenback managed to bounce back following the publication of the ADP findings. The EURUSD pair is thus on track to completing the anticipated trend reversal.
As regards the pair's behaviour in the near term, the price action is currently testing the major support level at 1.23000, as can be seen on the 15 Min chart below. This could substantiate the expectations for higher selling pressure in the near future.
Meanwhile, the selling trading volume is increasing, which leads to heightened bearish momentum. The MACD indicator underpins this.
EURUSD 15 Min Price Chart. Image source: Trendsharks ©, created with TradingView.com
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