- GBP/USD is set to reach its highest weekly point since September 24th as the US dollar shows broad weakness.
- The latest ADP report indicates a decrease of 32,000 jobs in the private sector for September.
- The S&P Global Manufacturing PMI held steady at 52, while the ISM Manufacturing PMI edged up to 49.1, although it remains in contraction territory.
The British Pound (GBP) made significant gains against the US Dollar (USD) on Wednesday, with the GBP/USD pair climbing to its highest point this week, matching levels last seen on September 24th.
Currently, GBP/USD is trading around 1.3512, marking a four-day increase of 0.50%. In contrast, the US Dollar Index (DXY), which gauges the greenback’s value against a basket of six major currencies, is lingering near 97.50, close to its lowest level in a week.
On Wednesday, ADP’s data revealed a drop in private sector employment for September, with 32,000 positions lost, which was a significant surprise compared to the anticipated gain of 50,000 jobs. Additionally, the employment figures for August were revised downwards, showing a decrease of 3,000 from an earlier reported increase of 54,000.
ADP’s Chief Economist, Nela Richardson, noted, “Even with strong economic growth in the second quarter, this month’s data further explores what we’ve witnessed in the job market and reinforces that US employers are being cautious regarding hiring.”
The disappointing ADP data arrives just as concerns about a potential US government shutdown raise doubts over the release of non-farm payroll (NFP) data scheduled for Friday, heightening the report’s significance.
In terms of manufacturing performance, the S&P Global US Manufacturing Purchasing Managers Index (PMI) for September remained steady at 52, aligning with previous forecasts and last month’s reading, signaling continued modest expansion in the sector. However, the more closely monitored ISM Manufacturing PMI improved slightly to 49.1, exceeding expectations after registering 48.7 in August.
