Moneycorp Market Updates
Markets Eye Fed and Tariff Moves as ADP Jobs Data Disappoints
2 minute readAs of this post-ADP update, the U.S. dollar is holding steady—and even gaining ground—against several major currencies, most notably the euro and the pound sterling, despite weaker-than-expected ADP employment figures.
Currency Movements
- USD/CAD: Flat on the day
- EUR/USD: Down 0.31%
- GBP/USD: Down 1.00%
Economic Data
Today’s ADP employment report showed a significant miss, with a decline of 33,000 jobs versus an expected gain of 98,000. This marks the first negative ADP print in two years. While the ADP report is not always a reliable predictor, the weak data increases pressure on the Federal Reserve to consider rate cuts. Attention now turns to tomorrow’s Non-Farm Payrolls report for a clearer picture of the U.S. labor market.
UK Market Commentary
The pound came under pressure today, falling around 1% amid growing political uncertainty in the UK. A reversal on the government’s flagship welfare reform has triggered volatility in the bond market, with UK gilt yields rising by 20 basis points. The political fallout has weighed heavily on sterling.
Looking Ahead
Markets are now focused on the upcoming July 9 tariff deadline, which could bring developments in U.S. trade policy. With the July 4 U.S. holiday approaching, trading volumes may be lighter than usual, potentially amplifying market volatility. Meanwhile, continued calls from the Trump administration for rate cuts will remain in focus heading into the long weekend.
