A Huge Day For USD, Focus On The US Non-Farm Payrolls

A Huge Day For USD, Focus On The US Non-Farm Payrolls

Get ready for 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.

The Federal Reserve delivered a surprise rate cut to cushion the potential impact from the spread of coronavirus on the economy. 

The Fed’s decision to cut rates came two weeks ahead of a regularly scheduled policy meeting. The last time the Fed made a rate cut between scheduled meetings was in October 2008 at the height of the global financial crisis.

Bank of Canada also cut 50 basis points to 1.25% this week. Investors are now looking to other major banks for stimulus signals amid growing coronavirus fears.

On the other hand, last Wednesday's data showed that the ADP Nonfarm Employment Change Number printed at 183K, which is above the 170K reading expected.

US Nonfarm Payrolls is expected to see 175K jobs created after rising 225K the previous month. The Unemployment Rate is expected to stay at 3.6%. 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.

Moreover, we will focus on Canada Unemployment Rate. The Unemployment Rate is expected to rise to 5.6% in February from 5.5%

Technical Analysis: 

EUR/USD: The US dollar has extended gains versus the Euro in the Asian Trading Session with a dramatic and decisive shift in U.S. rate expectations and related spreads.

We are closely watching the main resistance level of 1.1237 in the EURUSD pair. In order for the upward movement to gain more power, it needs to break out and stay above 1.1237 on a four hourly basis. Should this occur, we will see 1.1307 as the next resistance level. Otherwise, we will follow the support level at 1.1165 again.

Support : 1.1165 - 1.1114 - 1.1052

Resistance: 1.1237 - 1.1307 - 1.1365

GBP/USD: The GBPUSD pair found buyers from the 1.2768 main support level and then showed an upward movement this week. The GBPUSD pair 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 Safe haven currency, Yen has been rising for two weeks versus the US Dollar. The USDJPY downward movement started from the 112.36 major resistance level two weeks ago and then dropped to 105.84 key support level. If the pair stays above 105.84, on a daily basis, we might see an upward reaction and we will watch the resistance levels at 106.15 and 106.41. On the other hand, if the price drops below 105.84, the next support level can be seen at 105.58.

Support: 105.84 - 105.58 - 105.30

Resistance: 106.15 - 106.41 - 106.72

GOLD: The Gold Price has extended gains after The Federal Reserve cut interest rates as a result of the risk of the coronavirus. The yellow metals moved above the main support level of 1667. If the price stays above 1667, on a daily basis, the upward movement may continue and we will see the daily resistance level at 1684. On the downside, if the price moves down below 1667, the next support level will be at 1650.

Support: 1667 - 1650 - 1638

Resistance: 1684 

06 Mar 20 (Fri)

07:44 am



Never miss a winning trading opportunity.
Join OneBillionSignals now!

Never miss a winning trading opportunity.
Join OneBillionSignals now!

Download OBS Application Download OBS Application Now Sign Up
 

Risk Warning

Important : One Billion Signals will not be liable for any losses sustained while using the services provided on the One Billion Signals application. This application is not a solicitation to trade forex signals, nor is the representation is being made that any account will, or is likely to, achieve profits or losses similar to those discussed on the application. The past performance of any trading system or methodology is not necessarily indicative of future results.

Privacy Policy | Terms of Use

© 2020 One Billion Signals All Rights Reserved