US: Light data calendar Wednesday, focus on ADP - BNPP

The data calendar is light Wednesday, with US releases limited to ADP employment, according to analysts at BNP Paribas.

Key Quotes

“The market is expecting a strong 190k employment gain which, combined with the solid employment component of the manufacturing ISM released Tuesday, should support expectations for a strong payroll print on Friday (4 August).”

“BNP Paribas FX Positioning Analysis signals that USD short positioning remains very extended at a score of -39 (on our -/+ 50 scale), which represents a five-year extreme. A material upside surprise to payrolls on Friday could provide a catalyst for a broader unwind, with pricing for Fed tightening having now declined to discount just one further 25bp hike through to the end of next year.”