USD/JPY had lifted to Y83.25 area before settling back slightly as Japanese names sold, but dollar sees a fresh round of buying at writing, returning dollar-yen to near Y83.18. Stops still scattered to Y83.50 with little in the way of exporter supply reported.
HFE says Dec payrolls could be as much as +250k given the ADP report. ADP was +297k and was so big that "something other than seasonals must be at work." ADP reported gains across categories.
U.S. stocks were poised to head lower Wednesday, as investors mulled over signs of an improving job market.
Economy: Before the opening bell, private sector payrolls soared by 297,000 in December, according to a report from payroll processor ADP. Economists were expecting the report to show that payrolls increase by 100,000 last month, compared to November's 93,000 rise.
The report could set the tone ahead of the Friday's monthly jobs report. Economists expect employers boosted payrolls by 135,000 last month, following a 39,000 increase in November.
After the opening bell Wednesday, a report from the Institute of Supply Management is forecast to show that activity picked up in the service sector last month. Economists expect the ISM Non-manufacturing Index to register at 55.7, compared to November's 55.0 reading.
Companies: Wireless tech giant Qualcomm (QCOM, Fortune 500) agreed to buy chip maker Atheros Communications (ATHR) for $3.1 billion in cash, or $45 per share, a 22% premium over Atheros' closing price on Monday. Shares of Atheros rose 1.8% in premarket trading, while Qualcomm's stock edged up 0.6%.
CRT says +297k ADP Dec pvt payrolls was well above the +100k consensus. "Adjusting for the 'skew' we take off 68K and another 15k for govt jobs to makes this a still high 214K."
Mizuho says ADP +297k "is the first real sign that ther labor market may be getting better and that the economy has passed the point of peak risk. The 297,000 ADP report is not a perfect indicator of Friday's jobs number but will get economists to bump up" payroll ests. Mizuho says the whisper number for Fri's payrolls could go to +200k.
Dollar gets a kick higher as ADP report tops expectations with a strong +297k. Currently EUR/USD weakens to $1.3170, GBP/USD - to $1.5540, and USD/JPY rose to Y82.85.Stock futures pare losses.
Median estimate is for 100K rise in December after +93K month earlier. A rise in this indicator has positive implications for consumer spending which stimulates economic growth. Generally speaking, a high reading is seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.
EUR/GBP recovers off recent stretched lows of stg0.8475 to stg0.8512, but failed to set above. Cross currently holds around stg0.8492. Euro-sterling offers seen palced between stg0.8520/25, more between stg0.8540/45.
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