US weekly private hiring slows to 16,750 jobs in early October
The four-week average pace of US private-sector job additions eased to 16.75K through October 10, down from 17.50K previously, according to the ADP National Employment Report's weekly companion series. The reading points to a continued cooling in hiring momentum ahead of the Fed's next policy meeting.
The NER Pulse series, which tracks hiring trends on a rolling weekly basis between the monthly ADP reports, showed the slowdown has now persisted for a second straight reading. The decline from 17.50K to 16.75K was described as modest but consistent with the broader loss of hiring momentum seen in recent months.
The US Dollar Index (DXY) rose for a third consecutive session on Tuesday, moving back above the 102.00 level. Market participants showed increased caution ahead of the upcoming Federal Reserve policy decision, a dynamic that has supported the dollar in recent days.
Labor market data carries particular weight for the Fed, which operates under a dual mandate of maximum employment and price stability. Weaker private hiring figures can feed into expectations for the central bank’s interest rate path, since slack in the jobs market tends to ease wage pressures and, with them, one of the more persistent drivers of inflation.
Why it matters for markets: Softer private hiring data can weigh on expectations for Fed rate hikes or support the case for rate cuts, affecting the US dollar across major pairs including EUR/USD and USD/JPY, as well as US Treasury yields.
Source: FXStreet