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.