Employment in America is shrinking!

The ADP report showed that only 40,000 jobs were created in the previous month vs. 173,000 the month before.

ADP Measures the change in number of employed people during the previous month, excluding the farming industry. ADP, a leading provider of employment solutions for businesses, releases this indicator two days before the official Bureau of Labor Statistics (BLS) employment report. While the indicator has only been in existence since early 2007, it's shown some predictive value in regard to the BLS report.

Now tomorrow's NFP (Non Farm Payroll) report will be held in higher regard....so let's see if it confirms this report of shrinking employment.

So far the U.S. dollar hasn't taken it on the chin as much as it normally would because it has been so beaten down.

Also, the slow down in America will further slow emerging economies. You'll see mutual fund managers and hedge fund managers repatriate money back home (to America) and when this happens, it will provide support for the dollar even in the midst of an economic slowdown.

Sean Hyman
Editor/Trader, www.money-trader.com