July ADP private payrolls rose just 44K, missing forecasts and signaling a sharp slowdown in hiring momentum ahead of Friday’s jobs report.
The US Dollar Index (DXY) fell 0.15% to near 99.80 on Wednesday, extending its streak below the 100.00 mark to a fourth session. The decline followed a weaker-than-expected ADP Employment Change report, which showed private payrolls grew by only 44K in July, well below the 70K consensus and down from 98K in June.
The ISM Services PMI added to concerns, with the Employment Index plunging to 47.4 from 51.2, signaling contraction. However, the Prices Paid index climbed to 70.3, reinforcing persistent inflationary pressures in the services sector despite cooling labor demand.
Markets now await Friday’s Nonfarm Payrolls report, with the ADP miss raising expectations for a softer print. The mixed data complicates the Federal Reserve’s policy outlook, balancing slowing hiring against stubborn price growth.