US dollar is trading lower, with ADP softer.

The US Dollar (USD) is trading lower on Thursday, as a large number of data points are scheduled to be released in a short period of time. The Greenback had already dropped following the JOLTS Job Openings data on Wednesday. When the previous number was corrected and the most recent print for July came in lower than expected. It was enough for markets to price in more rate reduction by the Federal Reserve (Fed) and weaken the US dollar. As a result of narrowing the interest The rate gap between the United States and other countries.

The ADP data for July was also revised lower.

On the economic front, experience traders will be tasked with navigating the data set. That will be release to markets on Thursday. The monthly ADP Employment Change for private payrolls announcement came in worse than predicted, and the preceding data was also revised down. The weekly Initial/Continuing Jobless Claims report will follow, causing the US Dollar to move. The Institute of Supply Management (ISM)’s Purchasing Managers Index (PMI) Services data is also noteworthy.

Daily Market movers: ADP misses huge time.The US Dollar Index is declining and flirting with a break below 101.00.

At 11:30 GMT, the Challenger Job Cuts for August increased 193%, from 25,885 to 75,891.
At 12:15 GMT, the ADP Employment Change in August contracted from 122,000 to just 99,000. That is less than the projected elevated amount of 145,000. To make matters worse, the July total was lowered downward from 122,000 to 111,000.
The weekly jobless claims statistics will be announced at 12:30 GMT.
Initial Claims are predicted to remain stable at 230,000 in the week ending August 30, up from 231,000 the previous week.
Continuing Claims are expected to rise to 1.87 million in the week ending August 23 from 1.868 million.

Monthly Nonfarm Productivity and Unit Labor Costs for the second quarter will be release alongside the weekly Jobless Claims report.

The monthly Nonfarm Productivity and Unit Labor Costs for the second quarter will be release alongside the weekly Jobless Claims report. Nonfarm Productivity is predicted to rise steadily by 2.3%, while Unit Labor Costs should remain unchanged at 0.9%.
Around 13:45 GMT, S&P Global will release the final Services and Composite PMI data for August. Services are projected to remain unchanged at 55.2, while the composite is expected to maintain its prior level of 54.1.
The Institute of Supply Management (ISM) will complete this Thursday’s data batch at 14:00 GMT with its August reading for the Services sector.
The PMI headline estimate is predicted to be 51.1, down from 51.4 in July.
The Employment Index stood at 51.1 the prior month, with no projection available.
The New Orders Index stood at 52.4 in July, with no forecast given.
The Prices Paid Index stood at 57, with no estimates.
Equities are beginning to respond positively to the weaker US data . Following the ADP miss reading, US markets have erased initial losses and are now flat.
The CME Fedwatch Tool predicts a 55.0% chance of a 25 basis point (bps) interest rate drop by the Fed in September, against a 45.0% possibility of a 50 bps cut. Another 25 basis point drop (assuming September is a 25 basis point cut) projected in November by 30.2%, with a 49.5% likelihood that rates will be 75 basis points (25 bps + 50 bps) lower than current levels and a 20.3% chance that rates will be 100 (25 bps + 75 bps) lower.
The US 10-year benchmark rate trades at 3.73%, the lowest level this week. And falls further, closing the rate gap with other currencies.