Market Brief 2 August: ADP Nonfarm Employment Change (Jul)
We have three major catalysts today in the market. All three are high-impact events with weight to move the currencies of the respective countries and create opportunities.
GBP 09:30 a.m. GMT +1, Construction PMI (Jul) –Market analyst expectations are for a small decrease in the Construction Sector. For the month of July analysts predict a performance of 54.5 compared to 54.8 for the previous period. If the actual results point to better than projected activity in Construction, this should boost the British pound. However, if the news is worse off than expected, this should be seen as a bearish sign for the currency.
USD 13:15 p.m. GMT + 1, ADP Nonfarm Employment Change (Jul)- the report is a useful predictor for the data in the Non-farm payrolls on Friday, one of the most volatile days of the month. It tells us the monthly change in private employment and the data is based on a survey of about 400, 000 U.S. business clients. The forecast is for increase in the number of people employed at 185K for the month of July compared to 158K for the previous period. We have to be cautious, however, as the dollar has been steadily dropping. Make sure you fundamentals and technicals align and point to the same direction before taking action.
15:30 p.m. Crude Oil Inventories – expectations are for -2.900 M barrels change versus – 7.208 for the week before. If there is increase in crude oil inventories, this should weaken the price of oil. The opposite case, where inventories have been squeezed, this should be read as a positive sign for the price of oil.
For more events and results, see the economic calendar: https://tradeo.com/market-tools/economic-calendar
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