Daily Market Report 08/07/16

USD

The ADP National Employment Report showed private employers hired 172,000 workers in June, beating market expectations for a 159,000 gain. Private payrolls rose 168,000 in May. Last month, small businesses hired 95,000 workers, up from 84,000 in May. The services sector added 208,000 jobs last month, however  manufacturing and construction lost a combined 26,000 positions.
 
The Labour Department also stated that initial claims for state unemployment benefits declined 16,000 to 254,000 for the week ended July 2 - the drop left claims close to a 43-year low of 248,000 touched in mid-April.
 
May's weak job gains and the pending Brexit referendum prompted the Federal Reserve to keep interest rates unchanged last month. Even if payrolls rebound in June, economists say the stunning Brexit vote made it unlikely that the U.S. central bank would hike rates before the end of the year.
 

GBP

UK manufacturing and industrial production data came in ahead of expectations for May, The figure  may look good but both fell from a strong base in April, before accounting for the potential crash as a result of the UK's vote to leave the European Union in June. According to the latest figures from the Office of National Statistics, released on Thursday, industrial production fell by 0.5% in May — considerably  below the 2% growth seen in April, but a beat on the expected 0.9% fall.
 
Interior minister Theresa May and eurosceptic rival Andrea Leadsom emerged on Thursday as the two candidates who will battle to become Britain's next prime minister and lead the country out of the European Union. May won 199 votes and Leadsom 84 in a second ballot of lawmakers of the governing Conservative party. Justice Secretary Michael Gove took just 46 votes and was eliminated from the race. Around 150,000 grassroots Conservatives across the country will now vote to decide whether May or Leadsom becomes Britain's first woman prime minister since Margaret Thatcher was forced from office in 1990
 

Key Announcements

13:30 - USD: US Unemployment rate expected to rise to 4.8% from 4.7%

13:30 - USD: US non-farm payrolls (June) expected to rise to 175K form 38K