The USD resumed its drop against major currencies after US private payrolls for April came below analysts’ forecasts, raising worries before Friday’s non-farm payrolls report. The ADP report showed a job gain of 119,000 last month, compared with both prior and estimated readings of 158,000 and 150,000. Later in the day, eyes will focus on U.S. manufacturing report which is predicted to show an ease in expansion to 50.6 in April from 51.3 in March. Yet, the main focus will be on Friday’s jobs report as it will give a clear picture about the health of the U.S. labor market, following the recent deterioration in data, that is likely to determine the future of stimulus by the Fed. The world no.1 economy probably added 145,000 jobs last month after recording a gain of 88,000 a month earlier, according to median forecasts for the NFP report. But investors will look first for the outcome of the Fed two-day meeting ending on Wednesday, where policymakers are highly expected to remain stick to plans of having monthly bond purchases worth $85 billion to bolster the economy.
EasyForexNews Research Team