The ADP Employment survey on private jobs creation for October will be out this Wednesday at 13:15 GMT and is expected to show another large increase in employment. USD is set to trade as a safe-haven and will likely fall on good news, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“The report is expected to show a modest 650K gain in October, below the 749K from September. Data from the crucial sector may have a limited impact on the market as the focus will be on the presidential election result.”
“The ADP survey needs to post a big divergence from the anticipated 650K to have an effect on the greenback, which anyway may be temporal. The American currency may come under pressure on good news, particularly if equities plunged with the election outcome and change course with an upbeat report. The opposite scenario is also valid, as a dismal report could fuel risk-aversion and result in USD gains.”
“As for the EUR/USD pair, its bullish potential has been limited by the European Central Bank, as policymakers anticipated a rough Q4 and more easing coming in December. The pair may gain on elections’ turmoil, but once the dust settles, it will likely resume its bearish path.”
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