US: ADP employment and Q2 GDP estimate in focus - BBH

US data includes the ADP private sector employment estimate and a small increase from 178k in July is expected, according to analysts at BBH.  

Key Quotes

“Such a reading would not help fine tune expectation for the national report due out at the end of the week, but it would remove some downside risks.  The US will also report an updated estimate for Q2 GDP.  It may have ticked up to 2.7% from 2.6%, helped by a consumer sector that is aided by the continued improvement in jobs and wages.  The US reports the Fed's preferred inflation measure (core PCE deflator) tomorrow.  The y/y rate may have slowed from 1.5% to 1.4%, which would be the lowest since the end of 2015.  Such a report could weigh on the dollar through the interest rate channel.” 

“Canada reports its Q2 current account position.  The deficit likely grew.  Tomorrow, Canada reports Q2 GDP.  It is expected to have matched the first quarter pace of 3.7% annualized, and will likely reinforce expectations for the Bank of Canada to hike rates in October.”