The first day of a new month can add some wonky flow but the main thing today is the ADP employment report at 8:15 ET (1215 GMT).
The ADP methodology has been re-jigged to (hopefully) make it a better predictor of non-farm payrolls. We got a taste of the new methodology yesterday and it seems to have a more negative skew.
Given that, I see a high probability of a downside miss to the 135K consensus. That’s something that should hurt CAD and boost JPY, at least on the knee-jerk.
