The August ADP employment report, revealing a slower-than-expected job growth, has increased the likelihood of a larger-than-anticipated interest rate cut by the Federal Reserve at its upcoming meeting. Economists are now suggesting a 0.5% rate cut, citing the weakening private payroll growth and other economic indicators.
The EUR/USD pair traded sideways on Thursday morning, with investors awaiting crucial US employment data. The ADP private sector jobs report, followed by weekly unemployment claims, are expected to influence market sentiment ahead of Friday’s highly anticipated Nonfarm Payroll (NFP) report. The Fed’s focus on employment indicators makes these releases especially important, potentially impacting the likelihood of a rate cut in September.
