US ADP reported private payrolls surged 298k in February after rising 261k in January (revised up from 246k). The service sector added 193k jobs, while the goods sector added 106k. As for the more detailed breakdown, strength in services was paced by professional business services, up 66k, with leisure up 40k. For the goods sector, construction added a huge 66k, while manufacturing increased 32k. This is a much better than expected report and adds upside risk to Friday’s BLS numbers. The data should also confirm a Fed rate hike next Wednesday.
The dollar surged higher after the way above consensus (190k) ADP employment survey, taking EURUSD from over 1.0555 to 1.0535, and USDJPY to near 114.65 from 114.25. Cable continued its daily drop to new seven week intraday lows of 1.2138 before recovering to 1.2171 following the UK Chancellors first Budget speech of 2017. The intraday low took out the key 1.2150 and target 2 from my short position from last month for a total net gain of 314 pips.
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