ADP – the trusty predictor for Friday’s NFP

ADP – the trusty predictor for Friday’s NFP

The economy gets even more hurt the longer the pandemic extends

Last week, an official forecast regarding the unemployment rate has been made, and it doesn't look one bit positive. It is expected to be higher than 30%, a number that hasn't been seen since the Great Depression, according to Fed official, James Bullard.

It is easy to see that the pandemic caused only inconvenience on every level: work, food, social life, and, most important, economic. Of course, measures have been taken, but every released report only brings additional cause for concern. Not long ago, a $2 Trillion stimulus package was approved and signed by the president to help the people, and the overall economy.

The plan signed by Donald Trump included: an expansion of unemployment insurance, postponed student loan payments, low-interest loans for small businesses, $150 Billion for protective equipment of healthcare workers.

James Bullard, St. Louis Federal Reserve President, alongside his colleagues, has taken extraordinary measures during this time, bringing short-term loan rates close to zero, implementing programs made to keep markets functional, and funding needy businesses and institutions.

But with more than 3.2 million people filing for unemployment recently, and with 27,000 jobs cut from the private sector, the future doesn’t look bright, as the ADP Non-Farm Employment Change report shows. The most significant loss is on the small businesses side, with at least 90,000 payrolls cut.

Even though James Bullard is optimistic about the future “If we can get this to work right, everything will snap back to normal once this is over,” the Federal Reserve predicts 47 million layoffs, with an unemployment rate of 32%, that can potentially go as high as 42%.

Stay tuned to the hottest market events by following the Featured Articles section on our platform. Register now with Capex and enjoy:

  • Stellar customer service
  • Powerful WebTrader platform and mobile app for seamless trading on-the-go.
  • High-end integrated trading tools


Sources: Bloomberg.com, forexfactory.com, cnbc.com


The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.