US Dollar Consolidates Before ADP Jobs Data, With 68,000 Gain Seen
Updated
Updated · Action Forex · Aug 5
US Dollar Consolidates Before ADP Jobs Data, With 68,000 Gain Seen
3 articles · Updated · Action Forex · Aug 5
Summary
The dollar steadied against most major currencies after last week’s sharp slide, while USD/JPY recovered toward 158.00 from support near 155.30.
ADP private payrolls due later Wednesday are forecast to slow to 68,000 from 98,000, a reading that could either deepen dollar losses or ease them if it beats expectations.
Services data may shape that reaction: S&P Global Services PMI is seen rising to 53.6 and the ISM non-manufacturing index to 54.5, offering a test of whether the US economy remains resilient.
USD/CAD also rebounded from the 1.4000 area, but weaker US data could send it back toward that level as traders reassess the path for Federal Reserve policy.
Markets still treat ADP mainly as an early signal before official nonfarm payrolls later this week, which are likely to drive firmer conclusions on the labor market.