Forex Key Focus Ahead

Following a busy start to the week, Wednesday’s EUR data docket remains a thin showing, with the only UK Markit Construction PMI, due at 0830 GMT, of note. The Swiss Consumer Price Index (CPI) will be reported at 0630 GMT. The key focus will be on the UK PM Johnson’s announcement of his final Brexit proposal that will be submitted to the EU after his closing speech at the Annual Conservatives’ Conference.

Across the Atlantic, the US ADP Employment Change report (due at 1230 GMT) and speech from the Fed official Williams would be eagerly awaited for fresh signs on the US economic situation and Fed’s rate cut outlook. Also, the US political and trade developments remain in the spotlight and could have a significant impact on the market sentiment.

EUR/USD may draw bids on rising Fed rate cut odds

EUR/USD on Tuesday eked out a 0.32% gain and could remain better bid Wednesday, courtesy of the heightened US recession fears and the resulting rise in the odds of an October Federal Reserve (Fed) rate cut. 

GBP/USD: Sellers return ahead of key Brexit announcements

GBP/USD reacts negatively to early-day headlines increasing the odds of a no-deal Brexit. Media leaks suggest the UK PM Johnson’s final Brexit proposal to the EU seems to have a little acceptance. UK Construction PMI, US ADP jobs and Fed speak to decorate the macro calendar.

US ADP Employment Preview: Beware negative trends

Private payrolls to drop to below trend. ADP figures have been volatile this year. NFP and ADP averages have declined this year.

Non-Farm Payrolls: EUR/USD volatility set to rise – fasten your seat belts

The worst manufacturing PMI in 10 years raises concerns about the US economy. Two disappointing Non-Farm Payrolls reports also push tensions higher. EUR/USD volatility may rise after several years of relatively muted responses.

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