It was a jammed packed day yesterday with high tier data releases throughout the globe. The highlights included the US ADP Non-Farm data, UK Construction PMI and a Draghi led ECB Press Conference and rate decision. UK Construction PMI was the first to hit the wires. The reading posted a bearish 51.2, missing expectations as its worst reading in nearly three years. The market remained relatively intact after this poor figure as construction only accounts for about 6% of the UK economy.
The ECB announced yesterday afternoon that they will buy corporate bonds next week, as the official stimulus program broadens to a new asset class in the struggle against deflation. The ADP Non-Farm figure was also released yesterday afternoon. Last month’s ADP was in line with the all-important Non-Farm reading, this may give an indication of how today’s NFP will look. ADP met the economists’ consensus of 173k, a slight uptick on last month’s 166k.
Today’s main focus is the Non-Farm payrolls, scheduled for release at 13:30 BST. The reading is forecast to register at 159k, in line with last month’s worse than expected reading of 160k. With ADP at 173, it is unlikely this afternoon’s figure will post north of the bullish 200k mark. Also today, UK services PMI is forecast to improve to 52.5, whilst the US Unemployment rate is expected to drop back down to 4.9%.