What are the main events for today?

In the European session, we will get the final services PMIs for the Eurozone and the UK. The final readings aren’t generally market moving events. In the American session, we have the US ADP, the ISM Services PMI and Fed Chair Powell speaking. Those will likely move the market although Powell speech might be the most important event of the day.

13:15 GMT/08:15 ET – US November ADP

The US ADP is
expected at 150K vs. 233K prior. The last report surprised to the upside triggering a hawkish
repricing in interest rates expectations. Although the ADP has a poor track
record in predicting the NFP, the recent market’s sensitivity to labour market
data makes it a market moving event. I don’t see the market repricing the rate
cuts expectations further based on labour market data though. The main event
this month will be the US CPI on the 11th of December.

15:00 GMT/10:00 ET – US November ISM Services PMI

The US ISM
Services PMI is expected at 55.6 vs. 56.0 prior. This survey hasn’t been giving
any clear signal in the past couple of years as it’s just been ranging since
2022. The last report though jumped to a new cycle high, which highlights the
pick up in economic activity with the Fed’s easing and now a more
business-friendly incoming administration, with expectations of looser
regulations, tax cuts and so on.

Central bank speakers:

• 09:00 GMT – BoE’s Bailey (neutral – voter)
• 09:00 GMT – ECB’s Cipollone (dove – voter)
• 13:30 GMT/08:30 ET – ECB’s Lagarde (neutral – voter)
• 13:45 GMT/08:45 ET – Fed’s Musalem (neutral – non voter)
• 15:30 GMT/10:30 ET – ECB’s Lagarde (neutral – voter)
• 18:45 GMT/13:45 ET – Fed’s Powell (neutral – voter)

This article was written by Giuseppe Dellamotta at www.forexlive.com.