US private-sector hiring cooled slightly in late September, with the NER Pulse—ADP’s weekly companion report—showing employers added an average of 24.75K jobs per week over the four weeks ending 26 September. That compared with 25.25K in the prior reading, pointing to a modest loss of momentum after a pick-up earlier in the month.
Movements in the US Dollar and Markets
In markets, the US dollar weakened, with the US Dollar Index (DXY) slipping back to the low 102.00s. The move came alongside lower US Treasury yields across the curve and softer crude oil prices, while geopolitical risk in the Middle East appeared to ease.
Impact of Employment Data on Monetary Policy
Employment data can shift currency pricing by altering expectations for growth, inflation and monetary policy: tighter labour markets can lift wages and feed underlying inflation, and central banks such as the Fed—tasked with maximum employment and price stability—along with the ECB, which focuses on inflation, monitor labour conditions closely when setting policy.
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