ADP Report Sparks Dollar Rally
July 30, 2008
According to the ADP National Employment Report, non-farm private employment increased 9,000 from June to July, much better than market expectations for a loss of 60,000 jobs. July’s employment gains were primarily driven by growth in the service sector, while the manufacturing sector continued to decline for the 23rd consecutive month. Residential construction and financial activities related to home sales and mortgage lending, two of the hardest hit sectors, showed modest improvements for the first time in recent months. As such, the U.S. dollar firmed up nearly 0.5% against a trade weighted basket of currencies.