January's US Jobs Report; What To Expect
Coming Up: The US Non Farm Payrolls
All eyes will be on the US Non-Farm Payrolls today! The US Jobs Report will be released at 13:30 p.m. (GMT).
Why Is This Important?
The Non-Farm Payrolls track the change in the number of people employed by the US in manufacturing, construction and goods companies. It does not include farming industry employment. The US Jobs Report is so important for the upcoming Fed decisions.
Last Wednesday, the ADP Nonfarm Employment Change Number printed at 291K, which is above the 156K reading expected.
Financial markets remained on worried as the death toll from a new coronavirus in China jumped yet again. The death toll in China's Hubei province now stands at 618, and the total number of confirmed cases has increased to 22.112, the health authority in Hubei province announced yesterday. The fear is on getting worse than better, and actions by China could impact economic growth.
US Nonfarm Payrolls is expected to see 160K jobs created after rising 145K the previous month. The Unemployment Rate is expected to stay at 3.5%. Average hourly earnings will also be significant and are expected to be 0.3% which is higher than the previous month's number of 0.1%. An upbeat employment report will point to an improving US economy and support the greenback.
In addition to US Jobs Report, we will also focus on Canada Unemployment Rate and Ivey PMI data today. The Unemployment Rate is expected to stay at 5.6% in January.
Canada Ivey PMI is expected to rise to 53.3 in January from 51.9 over the previous month. A better realization would support the Canadian Dollar against the Greenback.
EUR/USD: Ahead of US Non-Farm Payrolls, the EURUSD pair is trading above the main support level of 1.0965. As long as the EURUSD pair stays above 1.0965 on a daily basis, the fall may be limited and we will face the resistance levels at 1.1007 and 1.1052. On the other hand, if the pair breaks down below 1.0965, the next support level will be located at 1.0930.
Support: 1.0965 - 1.0930 - 1.0876
Resistance: 1.1007 - 1.1052 - 1.1114
GBP/USD: The GBPUSD pair showed a downward movement and dropped below 1.2947. In the event that the fall continues below 1.2947, we will see support level at 1.2838. On the upside, if the price goes beyond 1.2947, the daily resistance level can be found at 1.3046.
Support : 1.2838 - 1.2768 - 1.2671
Resistance: 1.2947 - 1.3046 - 1.3136
USD/JPY: Keep your eye on the 109.72 daily support level in the USDJPY pair. If the pair stays above 109.72 on a daily basis, we will watch 110.36 as the main resistance level. On the downside, if the price drops below 109.72, we will see the support levels at 109.39 and 109.09.
Support : 109.72 - 109.39 - 109.09
Resistance : 110.36 - 110.93 - 111.52
GOLD: The Gold Price showed a downward movement and dropped below the 1564 main level. As long as the price stays below 1564 on a daily basis, the fall may continue and we will see the support levels at 1555. On the upside, If the price goes beyond 1564, the key resistance level will be at 1575.
Support: 1555 - 1540 - 1524
Resistance: 1564 - 1575 - 1584
07 Feb 20 (Fri)
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