G3 Recap 7-7-11

Main Items:

  • ADP rose 157k in June vs 70k exp and 38k prev.
  • Initial Jobless Claims declined to 418k last week vs 420k exp and 428k prev


  • ECB hiked 25bps to 1.5% as expected. Trichet said that inflation outlook remains on the upside. He also said that the ECB will suspend collateral rules for Portugal because it is under an IMF/EC/ECB program. “Oligopolistic structure’ of rating agencies is not satisfactory.
  • BoE kept policy unchanged as expected
  • Australia Employment rose 23.4k in June vs 15k exp and 7.8k prev. The UE rate was unchanged at 4.9% as expected


  • Model outputs for payrolls tomorrow are 178k, which is well above current consensus estimates of 105k: