US Non-Farm Payrolls Report Beats Expectations with Strong Employment Data: Implications for Fed Policy and Gold Prices

Investing.com – ADP’s US Non-Farm Payrolls report now misses expectations, this time coming in very positive and bigger than analysts’ expectations, moments before the release of jobless claims and ISM manufacturing PMI data. ).

The preliminary employment data came out strong this time, higher than experts’ expectations and close to the levels recorded in the previous reading, to motivate the Fed towards continuing the monetary tightening policy for the coming period, which supports a decline on the one hand, and an increase on the other.

The importance of the employment data issued today increases, because it gives an overview of the Fed’s move in the upcoming meetings, as if the data is positive, the Fed will motivate it towards more tightening and that the economy is still in good health, and vice versa, if the data is negative, the Fed may motivate that. Towards cooling as a sign of a slowing economy that leads to lower inflation.

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Employment Report for ADP

He reported that the economy added 278 thousand jobs for the month of May, while experts expected an addition of 170 thousand jobs.

The previous April reading was revised to 291 thousand from 296 thousand.

This indicator determines the change in the level of those hired during the past month, with the exception of those hired in the agricultural sector. This indicator is published two days before the publication of the ADP Employment Report of the Official Bureau of Human Resources Statistics, which provides solutions in the field of employment for companies. Since its release in 2007, it has proven to be a good indicator for predicting the employment report.

Gold and the dollar now

It fell 0.2% to $1,977.

It fell by 0.1% at $1,960 an ounce.

While it settled near 104,200 points.