US ADP jobs report overview
Wednesday’s US economic docket highlights the discharge of the ADP report on private-sector employment, scheduled at 12:15 GMT. Economists expect another strong report, indicating that private-sector employers added 600K new jobs in June. this is able to mark a pointy deceleration from the previous month’s blowout figure of nearly a million .
According to Yohay Elam, FXStreet’s own analyst, “ADP’s monthly Nonfarm Payrolls report provides a snapshot of private-sector hiring and is a number one indicator to the official NFP released by the Bureau of Labor Statistics. Wednesday’s early publication helps shape expectations for Friday.”
How could the info affect EUR/USD?
A stronger than expected print will increase the optimistic outlook for the US economy and therefore the market . this might further fuel speculations a few potential early monetary policy tightening by the Fed and supply a further boost to the already stronger US dollar. Conversely, the market reaction to softer reading is more likely to be muted as investors would like to attend for the discharge of the official jobs report (NFP) on Friday. This, in turn, suggests that the trail of least effort for the EUR/USD pair is to the downside.