ADP PAYROLLS NUMBERS ON DECK FOR WEDNESDAY
US employment numbers will once again take the spotlight on Wednesday, giving investors the latest on the world’s largest economy. Beyond that, market participants can expect a steady stream of high-profile data ahead of what’s expected to be an active second half of the week.
Action begins at 08:00 GMT with a report on Italian unemployment. Though not expected to be a major market mover, the release is expected to show a slight dip in the unemployment rate for February.
The Chartered Institute of Purchasing and Supply (CIPS) will release the latest construction report for the United Kingdom at 08:30 GMT. The construction purchasing managers’ index (PMI) is projected to weaken to 50.8 in March from 51.4 the previous month.
Employment data from Brussels will also make the rounds on Wednesday, as Eurostat prepares to release the Eurozone jobless rate for the month of February. The unemployment rate likely fell to 8.5% in February from 8.6% the month before.
Separately, Eurostat will release a high-profile consumer inflation report at 09:00 GMT. The consumer price index (CPI) is expected to show an acceleration of 1.4% in the 12 months through March, up from 1.1% in February. So-called core inflation, which strips away volatile goods such as food and energy, likely expanded 1.1% year-over-year.
ADP will unveil the latest private-sector payroll data for the US economy at 12:15 GMT. The monthly data set is considered an accurate reflection of the upcoming nonfarm payrolls report, which is due 48 hours later.
Private-sector payrolls are forecast to rise 208,000 in March, compared with 235,000 the month before.
ISM and Markit will each report on US services activity Wednesday morning Eastern Standard Time. The ISM report, which is more closely watched by the financial markets, will likely show a deceleration to 59.0 from 59.5 in February.
The Australian dollar edged higher on Wednesday after government data showed a stronger than expected rise in retail sales for the month of February. The AUD/USD exchange rate climbed 0.2% to 0.7698. Immediate support is located at 0.7651, which corresponds with the recent low.
Europe’s common currency was back below 1.2300 on Wednesday following a series of sharp downshifts. EUR/USD was last seen trading at 1.2277, where it had gained 0.1% from the previous close. Immediate resistance is located at 1.2340. On the flipside, the key support level is located at 1.2250.
Cable maintained its neutral trading range on Tuesday, with prices continuing to hold below the 1.4100 handle. At the time of writing, GBP/USD was trading at 1.4081, where it had gained 0.2% from the previous close. The pair remains capped by a strong resistance level seen at 1.4250, which corresponds with the 200-day simple moving average.