Get Ready For U.S. Nonfarm Payrolls

Get Ready For U.S. Nonfarm Payrolls

What Should We Expect From The U.S. Nonfarm Payrolls?

A huge day for trading, keep your eye on the U.S. Nonfarm Payrolls today! The US Jobs Report will be published at 12:30 p.m. (GMT).

Why Is This Important?

The Nonfarm Payrolls track the change in the number of people employed by the U.S. in manufacturing, construction and goods companies. It does not include farming industry employment. The U.S. Jobs Report is so important for the upcoming Fed decisions.

Last Wednesday, Federal Reserve lowered interest rates by 25 basis points, as expected The central bank signaled it will pause to assess the economy before acting again.

The Fed has cut rates largely to protect the economy from a damaging trade war with China that's curbed the U.S. and global growth. The U.S. economy, however, is still "rising at a moderate rate," the Fed noted.

In addition to the Fed Rate Decision, the ADP Nonfarm Employment Change Number printed at 125K last Wednesday, which is above the 120K reading expected.

In today’s U.S. Nonfarm Payrolls, the market expects to see 89K jobs created after rising 136K the previous month. The Unemployment Rate is expected to tick up to 3.6% from 3.5%. Average hourly earnings will also be significant and are expected to be 0.3%, lower than the previous month's number of 0.4% An upbeat employment report will point to an improving US economy and support the greenback.

Moreover, we will also focus on the US ISM Manufacturing PMI today. The data for October is expected to rise to 48.9 from 47.8 in the previous month.

Technical Analysis: 

EUR/USD: Ahead of the US Non-Farm Payrolls, the EURUSD pair is testing the 1.1165 daily resistance level. In order for the rise to gain more power, it needs to break out and stay above 1.1165 on a daily basis. At this point, we will see 1.1237 as the next resistance level. Otherwise, we will see the support levels at 1.1114 and 1.1052.

Support : 1.1114 - 1.1052 - 1.0007

Resistance : 1.1165 - 1.1237 - 1.1307

GBP/USD: The GBPUSD pair showed an upward movement yesterday and it is currently trading above the 1.2947 main level. As long as the price stays above 1.2947 on a four hourly basis, the rise may continue and the resistance level will be at 1.3046. On the downside, if the pair drops below 1.2947, the next support level can be found at 1.2838.

Support: 1.2947 - 1.2838 - 1.2768 

Resistance: 1.3046 - 1.3136 - 1.3231

USD/JPY: The Japanese Yen gained value versus the US Dollar yesterday. Ahead of the US Jobs Report, focus on the 107.82 main support level. As long as the pair stays above 107.82, on a daily basis, the resistance level can be found at 108.14 and 108.52. In contrast, if the price drops below 107.82, the next support level will be at 107.52.
Support : 107.82 - 107.52 - 107.22
Resistance: 108.14 - 108.52 - 108.79

GOLD: We will closely watch the main level of 1509 in the Gold Price. If the yellow metal price stays above 1509 on a four hourly basis, the upward movement may gain more momentum and the daily resistance level can be seen at 1524. Otherwise, if the price drops below 1509, the major  support level will be at 1492

Support: 1509 - 1492 - 1478 

Resistance 1524 - 1540 - 1555

01 Nov 19 (Fri)

07:11 am

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