US: Focus on ADP employment – TDS

According to analysts at TD Securities, the US ADP series has not been a reliable indicator of what to expect in the BLS report, but it can be market-moving nonetheless.

Key Quotes

“We see upside risk for the December ADP data, even as we see downside risk for payrolls on Friday. The data diverged in the opposite direction in November: A weak 67K rise in the ADP series was followed by a 254K surge in private payrolls (266K in total). In Fedspeak, Governor Brainard will be speaking on the Community Reinvestment Act.”