Bank of America Global Research previews the US July jobs report due on Friday.

"July payrolls: We expect payrolls to rise by a below-consensus (but still firm) 80k in July (private: 95k), up from 57k in June. Benign claims data and steady labor market indicators point to continued job growth, though we see some downside risks from summer hiring distortions, softer recent ADP readings, and a potential reversal in local gov't hiring. We expect the u-rate to round up to 4.3% as participation rebounds, though strong household employment could keep it at 4.2%," BofA notes.

"A report in line with our forecast would reinforce the view that downside risks to the labor market have largely faded, supporting our call for three hikes this year," BofA adds.