The key focus on Wednesday will be on the euro area's PMI data and then the U.S. ADP employment for the first month of 2020, yet investors will keep their focus on the key developments in the Chinese virus.
The final manufacturing and services PMI composite in the euro area, which may confirm the steadiness of the growth pace in January at 50.9.
In addition, ECB President Christine Lagarde is due to speak in Paris, where more hawkish than expected is good for the euro.
In the U.S., the ADP Employment report may show that private employers have created 157,000 jobs last month after a job creation pace of 202,000.
The jobs data is expected to grab attention since it reflects the strength of the labor market, ahead of the awaited non-farm data due on Friday.
Mainly, the U.S. dollar is affected by the NFP figures since it is mainly used by the Fed as a key guide before deciding on interest rates.
The NFP may indicate that American employers created 161,000 jobs in December, and the unemployment rate has stabilized at 3.6 percent.
It should be noted
that any developments regarding the spread of the deadly coronavirus could
weigh on the general sentiment more than the economic data.