Considering a rather high correlation between the ADP and NFP numbers, we could see solid results for February. The ADP employment report showed the economy added 183K jobs last month, marginally below the 189K expected. By the way, the January reading was revised strongly upwards to 300K from 213K originally reported.
However, considering that the Fed policy makers have repeatedly indicated that the country’s labor market is tight already, the focus will likely shift towards the wages data. So should the numbers disappoint, the greenback could lose ground across the board after a strong start of the week.
As for the EURUSD pair, dismal jobs and wages data may help the prices settle above the 1.12 level after yesterday’s plunge to the low of 1.1175. But any potential rally will likely be short-lived and limited due to the general euro weakness.