ADP TO PROVIDE A GLIMPSE OF US NONFARM PAYROLLS
US jobs data take centre stage on Wednesday, as the ADP Research Institute unveils its latest jobs report.
ADP’s report, which is due at 12:15 GMT, is expected to show the creation of 185,000 private sector jobs for the month of July. That follows a gain of 158,000 from the previous month.
Although the ADP numbers usually track closely with the official nonfarm payrolls report, last month’s tally diverged from the official result. The Labor Department announced on 7 July that 222,000 nonfarm jobs were added to the economy in June.
The ADP data provide a snapshot of private-sector job creation by employer type and industry, giving investors granular insights into the economy. Official nonfarm payrolls are due 48 hours later.
The North American calendar is relatively calm after the ADP report. The US Energy Information Administration (EIA) will release its weekly crude inventory report at 14:30 GMT. Crude stocks are forecast to have declined by 2.9 million barrels in the week ended 28 July. Stockpiles plunged by 7.1 million barrels the week before.
In monetary policy, Federal Open Market Committee (FOMC) members Loretta Mester and John Williams are scheduled to deliver speeches throughout the day. Their comments will be closely monitored by rate-watchers and currency traders.
Investors looking to trade in advance of the North American session will find a steady stream of economic data to look forward to. Action begins at 5:45 GMT with the SECO consumer climate survey, which provides a barometer of consumer confidence in Switzerland.
At 7:00 GMT, the Swiss government will unveil its latest employment data for the month of July. The number of people on unemployment benefits is forecast to decline by 66,500.
Swiss retail sales and PMI data will make headlines at 7:15 and 7:30 GMT.
At 09:00 GMT, the European Commission’s statistical agency will report on producer prices for the month of June. The producer price index (PPI) is projected to decline 0.1% month-on-month.
The euro gained too much, too fast at the start of the week, pushing the EUR/USD into overbought territory. The pair remains well supported, but has given back some of its gains. Initial support is located at 1.1780. On the opposite side of the ledger, strong resistance is gauged at 1.1870.
Pound sterling is maintaining a strong pivot near 1.3200 US. Despite recent gains, the GBP/USD could be subject to volatility later this week as the Bank of England (BOE) votes on monetary policy. The pair is eyeing 1.3250 as a near-term resistance.
The USD/CHF bounced on Tuesday, as the dollar erased some of its early-week gains. However, the USD/CHF faces immediate resistance at 0.9700, with a rally north of that level needed to erode the pair’s three-month downtrend.