ADP Employment – US private sector companies continued to shed jobs in the month of June as the ADP employment report showed another decline of 473,000 jobs lost in the month. Although better when compared to the almost 700,000 average lost in the first quarter, the report results continued to be released to the downside of expectations. For the month, estimates were for a shortfall of 400,000. As a result, today’s release will likely push positive expectations of tomorrow’s Labor Department report, with expectations leaning on a 325,000 job shedding in the month of June and a subsequent increase in unemployment to 9.6 percent.

German Retail Sales – Month over month improvements were once again visible in the retail sales report for Europe’s largest economy. For the month of May, consumption had improved by 0.4 percent, making back to back gains. The better than expected release is surprising considering the country’s rising unemployment rate and current slowdown in industrial and manufacturing sectors. Nonetheless, confidence seems to be on the mend with today’s report likely to dampen any near term rate cutting speculation. Subsequently, the euro gained heavily following the release as we approach a shortened week. Bouncing on technical support circa 1.4000, the EURUSD has now gained, appreciating to just shy of the 1.4150 handle in the New York morning.

UK Manufacturing PMI – Downtrodden spirits were given a boost today following an upbeat manufacturing report in the UK. According to the CIPS/Markit manufacturing PMI, activity in the sector rose to a 13 month high as output grew for the first time in over a year. Simply, the report’s reading of 47 last month shows that the British economy may be rising from one of the worst recessions, an indication that current fiscal and monetary stimulus may be working. However, the upbeat news left the pound sterling rather unimpressed, appreciating only slightly against the US dollar to 1.6494, the current session high.

Headlines

Brazil’s Real to Extend Best Rally, Fabio Alves, Bloomberg (July 1)

Yellen says Fed Should Not Rush To Reverse Policy, Ros Krasny, Reuters (July 1)

Tags: ADP, British Pound, Euro, Foreign Exchange, German Retail Sales, US Dollar

This entry was posted on Wednesday, July 1st, 2009 at 9:24 am and is filed under British Pound, Economic Indicators, Euro, US Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.