The
key focus on Wednesday will be on Germany’s factory orders data and then the
U.S. ADP employment for the last month of 2019, yet investors will keep their
focus on the key developments in the Middle East.
German
factory orders may signal a 0.2 percent in November, following a 0.4 percent
drop in October, according to median forecasts.
The
latest data from the manufacturing sector in Germany showed a widening
contraction in December to 43.7 from November’s five-month high of 44.1,
Markit’s Purchasing Managers’ Index (PMI) indicated.
In
the U.S., the ADP Employment report may show that private employers have
created 160,000 jobs last month after a job creation pace of 67,000.
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 165,000 jobs in December, and
the unemployment rate has stabilized at 3.6 percent.
It should be noted
that any developments regarding trade negotiations between the United States
and China may affect the dollar in particular and the markets in general, while
investors should keep their eyes open on the melting situation between the U.S.
and Iran.