[ForexNews]

The ADP National Employment report revealed a contraction of 532,000 in private payrolls in May, slightly below consensus expectations for a decline of 525,000. The data was revised to show a bigger decline of 545,000 in April versus the previously reported 491,000 drop. This brings the data more in line with the decline of 611,000 in BLS non-farm private payrolls in April. Analysts caution against putting too much weight on the ADP data given the recent change in methodology and frequent revisions. Also this morning, the job placement firm Challenger, Gray and Christmas, reported 111,182 in announced layoffs in May, down from 132,590 in April, but up 7% y/y. This is the lowest number of job cuts since September and the slowest y/y growth rate since February 2008.

Overall, analysts believe that the pace of job cuts continued to slow in May. Market looks for Friday's jobs report to show a decline of 500,000 in non-farm payrolls, which would be the slowest decline since October.