ADP payrolls missed forecasts by a wide margin, reinforcing labor market concerns. EUR/USD and GBP/USD consolidate near resistance as markets await Friday's NFP report.
Alpha Score of 61 reflects moderate overall profile with strong momentum, weak value, moderate quality, moderate sentiment.
The euro and the pound held their gains against the dollar this week after the Federal Reserve left interest rates unchanged and a weak ADP employment report reinforced concerns about the US labor market.
The Fed, as expected, kept the federal funds rate steady and reiterated that future moves depend on incoming data. That offered no fresh support for the dollar. The ADP report showed the US private sector added 44,000 jobs in July, far below the 68,000 economists had forecast and down from 95,000 the prior month. ADP shares, which carry an Alpha Score of 55 (Mixed), have been under pressure as the weak payroll data raised concerns about the labor market. ADP stock page
The ISM services index for July edged down to 54.1, still above the 50 expansion threshold. The employment component fell to 47.4, a level that indicates contraction. The data reinforced the picture of a cooling labor market.
EUR/USD rallied last week and broke above the 1.1500 resistance level. This week, the pair has traded sideways between 1.1500 and 1.1560. A move above 1.1560 would open the path to the 1.1600–1.1620 area. A break below 1.1500 would weaken the bullish case.
GBP/USD followed a similar pattern, consolidating between 1.3420 and 1.3480 after last week's advance. A decisive break above 1.3480 would target the July high near 1.3560. A move below 1.3420 would put the 1.3350–1.3400 range in play.
The next major catalyst is Friday's US nonfarm payrolls report. Employment growth and the unemployment rate, with wage data also in focus, will shape expectations for the Fed's next policy move.
Friday's release is due at 8:30 a.m. ET.
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