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Much Firmer Than Expected ADP Data Reverberates

CROSS ASSET

The much firmer than expected ADP employment print (+497K vs. exp. +225K, alongside a mild negative revision) triggers a USD bid, with the BBDXY recovering from session lows to trade little changed on the day as hawkish re-pricing is seen on the FOMC-dated OIS strip, U.S. 2- & 10-Year yields top round number resistance (5% & 4%, respectively) and e-minis cheapen further on the central bank/yield repricing dynamics.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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