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2 Oct 2013
Flash: US data worsens while the shut-down starts to bite – UBS
FXstreet.com (Córdoba) - The UBS analyst team commented on the recent release of the US private employment report and how the government shutdown is affecting the USD.
Key Quotes
"The ADP employment indicator for September printed at 166'000, well below the expected 180'000. The previous month was revised down by 17'000. The ADP is a leading indicator with a loose relationship to the highly important non-farm payroll (NFP) data".
"Normally, the impact on financial markets is not very strong, given that NFP is published two days later. However, due to the government shut-down, NFP are most likely not published this month and therefore a weak ADP hurts the USD".
Key Quotes
"The ADP employment indicator for September printed at 166'000, well below the expected 180'000. The previous month was revised down by 17'000. The ADP is a leading indicator with a loose relationship to the highly important non-farm payroll (NFP) data".
"Normally, the impact on financial markets is not very strong, given that NFP is published two days later. However, due to the government shut-down, NFP are most likely not published this month and therefore a weak ADP hurts the USD".