Get Ready For US Non-Farm Payrolls Report!
Investors will focus on U.S. Non-Farm Payrolls today. It will be announced at 12:30 p.m. (GMT) and the Jobs Report is a significant determinant of Fed rate hike in December
The employment data is expected to show a strong in jobs growth after Hurricanes Harvey and Irma impacted the September report. Note that; the FOMC kept benchmark interest rate at 1.00-1.25% as expected last Wednesday. However, the Fed said ‘Economic activity rising at solid rate despite storms and the labor market continued to strengthen, unemployment declined. Also, The Fed forecast still signals another 2017 hike and three more in 2018.
The ADP Non-Farm Employment Change data was released last Wednesday and it rose to 235K from 200K a month ago.
Jobs report expected to 315k jobs created in October after falling -33K the previous month. Unemployment Rate is expected to remain flat at 4.2% compared to a month ago. Average hourly earnings will be another release to be followed closely at the same time and are expected to ease 0.2% from 0.5% a previous month. An upbeat employment report will point to an improving economy and support the case for higher interest rates in December
Technical Analysis:
EURUSD: The EURUSD pair showed an upward reaction from the 1.1607 main support level this week. Ahead of the Jobs Report, In the event that the upward movement continues above 1.1660. the next key resistance level will be at 1.1720. However, As long as the price stays below 1.1720 on a four-hourly basis, the bullish action may be limited. On the other hand, if the price able to break down 1.1607, the dollar gain more value versus the euro and next support levels will be at 1.1570 and 1.1531.
Support: 1.1607 –1.1570 - 1.1531 Resistance: 1.1660 - 1.1720 – 1.1812
GBPUSD: The GBPUSD pair dropped dramatically yesterday after BoE rate decision. Bank Of England hike rates to 0.5% in 7-2 Vote; first rate increase in over 10 years. But the shift in sentiment gave Pound Bearish Action. The BOE indicated that another increase wasn’t imminent. The price is testing the key support level of 1.3050. If the price able to break down 1.3050, the bearish action may continue and next support levels will be at 1.3007 and 1.2961. On the other hand, if the price rises above 1.3050, we will face 1.3103 and 1.3152 as resistance levels.
Support: 1.3050 – 1.3007 – 1.2961
Resistance: 1.3103 – 1.3152 – 1.3199
GOLD: The Gold price has been uncertain. The daily level of 1276 is significant for the price action. As long as the price stays below 1276, on a daily basis, the bearish action is most likely dominate. And we will follow 1272 and 1.265 as support levels. On the other hand, if the price moves up above 1276, the next resistance level will be at 1283
Support: 1272 - 1266 - 1256
Resistance: 1276 – 1283 - 1291
USDJPY: Ahead of Jobs report, The USDJPY pair is trading above the key support level of 113.63. As long as the price stays above 113.63, on a four-hourly basis. the dollar may gain more value against the yen. At this point, the daily resistance level will be 114.63. Otherwise, if the price a downward movement below 113.63, we will watch support level at 112.94
Support: 113.63 – 112.94 – 112.46
Resistance : 114.63 – 115.61 – 116.89
09 Jul 18 (Mon)
12:16 pm
