US: ADP employment and Q2 GDP estimate in the limelight - Rabobank

In the forthcoming US session, the release of ADP employment and second estimate of US Q2 GDP growth are going to be the key economic releases for investors, according to the research team at Rabobank.

Key Quotes

“The ADP employment report may provide the markets with some clues for non-farm payrolls scheduled on Friday. The consensus expectation is for an increase of 185k in August, up from 178k last month. However, ADP figures have to be taken with a pinch of salt given that the survey doesn’t have a very strong track record in predicting non-farm payrolls.”

“The second estimate of US Q2 GDP growth will be also released. A modest revision higher to 2.7% from the initially reported 2.6% is expected following upside revisions to retail sales in May and June. Unless the headline figure significantly exceeds market expectations, Q2 GDP growth is unlikely to have serious impact on markets, which remain driven so far this week by developments in geopolitics.”