| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:30 | Switzerland | Consumer Price Index (YoY) | August | 1.3% | 1.2% | 1.1% |
| 07:00 | Switzerland | Gross Domestic Product (QoQ) | Quarter II | 0.5% | 0.5% | 0.7% |
USD strengthened against other major currencies in the European session on Tuesday as investors prepared for a raft of crucial U.S. data releases later this week, including statistics on the employment situation and business activity, which are expected to affect the Federal Reserve’s rate path.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, increased 0.17% from the previous close to 101.82.
Markets will receive the ISM's latest survey of the U.S. factory sector later in the day (14:00 GMT). The report is expected to confirm a continued contraction in the U.S. manufacturing sector in August, with the ISM Manufacturing PMI likely coming in at 47.5, up from 46.8 in July.
Tomorrow, investors will focus on the July job openings and labour turnover survey (JOLTS), July factory orders data, and the Fed’s latest report on the state of the U.S. economy - the Beige Book.
Thursday will bring the ADP’s August report on the U.S. private sector job creation, the Labour Department’s weekly statistics on jobless claims, and the ISM’s August services sector survey.
Finally, the much-anticipated U.S. August jobs market report will be released on Friday. Economists expect the report will show that non-farm payrolls rose by 165,000 last month, following a 114,000 increase in July, an employment rate slipped to 4.2% from 4.3% in July, and annual wage growth accelerated to 3.7% from 3.6% in July.
If the U.S. labour market figures come in cooler than expected this will cement the case for the Fed to cut interest rates. If the data come in stronger than anticipated, this will increase the likelihood of a small - 25-basis-point - rate reduction by the U.S. central bank in September.