Forex News – Dollar drops against yen after disappointing ADP jobs data

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The dollar fell sharply against the yen after disappointing US jobs numbers showed fewer jobs  were created in April than expected.

The ADP private sector employment report showed 119,000 were added in April, lower than the expected 177,000. The figure was lower than the 209,000 jobs created in March.

“It’s definitely disappointing,” said Boris Schlossberg, Director of FX Research, GFT, Jersey City. “After Tuesday’s ISM manufacturing data, the market was primed for an upside surprise, so this definitely takes the steam out of the sails. But ADP is always a big question mark and tomorrow’s ISM services will be critical as that tends to be a much better forecaster of the non-farm payrolls number.”

USDJPY tumbled to 80.04 within a few minutes, from 80.30 where it was before the data.

The Canadian dollar weakened against the greenback since the U.S. is Canada’s major trading partner and so is sensitive to data from across the border. USDCAD rose to0.9890 after the data from 0.9872

The focus now turns to the more important non-farm payrolls report due on Friday.