US Private Sector Expected to Add 70K Jobs in July, ADP Report Due Wednesday

The US private sector is expected to add 70K new jobs in July, according to the ADP Employment Change report set for release on Wednesday. This figure comes after a gain of 98K in June and precedes the Nonfarm Payrolls (NFP) report scheduled for Friday.

The ADP report tends to signal employment growth ahead of the NFP, but market participants should note that there's no guarantee a strong ADP will translate to a similarly upbeat NFP. The figures do impact the US Dollar (USD), with better-than-anticipated numbers generally boosting demand for the Greenback.

However, market attention currently lies elsewhere due to ongoing tensions in the Middle East. Optimistic news on Tuesday about a potential deal between the US and Iran has pushed Oil prices lower and weighed on the USD. Despite this, an upbeat ADP report could provide near-term support to the DXY, but it seems unlikely to trigger a significant market reaction.