US June NFP forecast at 250K – ANZ

FXStreet (Barcelona) - Reviewing the US data releases yesterday, Economists at ANZ, see possibility of an upside rebound for nonfarm payrolls to 250K in June.

Key Quotes

“US: the ISM manufacturing index increased to 53.5 (mkt: 53.2) in June from 52.8. The details of the survey were solid with new orders and employment components rising to their highest level since December. Overall, it appears that manufacturing activity is showing tentative signs of stabilisation following the weakness earlier in the year.”

“The ADP employment report rose 237k (mkt: 218k) in June. While ADP has been a poor indicator of non-farm payrolls in recent times, the strength does gel with other upbeat labour market indicators. As such, we expect robust non-farm payrolls growth of 250k and a further decline in the unemployment rate to 5.4% on Friday night.”

“Construction spending gained 0.8% m/m in May and revisions to the previous two months were also positive.”

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