Forex

Private-sector firms in the U.S. shed 79,000 jobs in June, the biggest net job loss since November 2002, according to the ADP employment index released Wednesday.


Employment in the services sector fell by 3,000, the first decline since November 2002.
The report suggests that U.S. non farm payrolls probably fell for a sixth straight month. The Bureau of Labor Statistics will report on June payrolls on Thursday.
Although the report shows a fragile job market, "this is not a recession-like report," said Joel Prakken, top economist for Macroeconomic Advisers LLC, which computes the index from anonymous payroll data supplied by Automatic Data Processing Inc

Jobs in the goods-producing sector fell by 76,000, the 19th straight decline. Factory jobs fell by 44,000 and construction jobs dropped by 34,000. Employment in financial services fell by 3,000.

Economists surveyed by Market Watch expect 40,000 net payroll jobs were lost in June, following a loss of 49,000 in May. Lehman Bros. economists lowered their forecast to a loss of 75,000 from minus 50,000.

The ADP sample is taken during the same week of the month as the government survey, using similar techniques based on anonymous data from about 400,000 businesses covering about 24 million workers. ADP, Roseland, N.J., provides payroll and human-resources services to about one of every six U.S. workers, at more than 500,000 companies.


Oil prices rose close to record highs on Wednesday as official data revealed a drop in stockpiles of US crude, traders said.

Brent North Sea crude oil for August delivery jumped $2.60 to $143.26 a barrel.

New York's main oil contract, light sweet crude for August, added $1.98 to $141.95.

The US Energy Information Administration said today that stockpiles of crude had fallen by 2.0 million barrels in the week to June 27.

demand for the dollar has declined against the Euro

1. Interest rates in the U.S. are declining rapidly while those in Europe are declining more gradually.
2. Fear of recession in the U.S. means investors are looking for non-dollar denominated investments.
3. As more countries join or trade with the EU, demand for the Euro increases.
4. As the dollar declines, investors are less likely to hold assets in dollars until the decline stops.
5. Many investors are concerned that the large U.S. debt and current account deficit means the U.S. may let the dollar decline so the relative value of its debt is less.