Focus on US Non-Farm Payrolls today! The US Jobs Report will be released at 12:30 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.
President Donald Trump and First Lady Melania Trump have tested positive for Covid-19. We will begin our quarantine and recovery process immediately. We will get through this together, President Trump said.
The US Dollar weakened as fresh hopes of new U.S. fiscal stimulus. The optimism for a new COVID relief package has been based on comments from U.S. Treasury Secretary Steven Mnuchin, who said Wednesday that talks with House Speaker Nancy Pelosi had made progress, prompting the House of Representatives to postpone a vote on a Democratic coronavirus plan to allow more time for a bipartisan deal to come together.
Mnuchin said later that he would not accept the Democrats' proposed $2.2 trillion aid package, rather something closer to $1.5 trillion, adding that an agreement had been reached on direct payments to Americans
This week's data showed US private-sector job creation rose to 749K above the expectation of 650K. On the other hand, the third print for US Q2 GDP showed a drop of -31.4%
US Nonfarm Payrolls are expected to ease 850K in September from 1.371K. The Unemployment Rate is expected to drop to 8.2% from 8.4%. Average hourly earnings will also be significant and are expected to come out 4.8%, year on year basis.
In addition to the US Jobs Report, keep your eye on the Consumer Price Index in the Eurozone. On the year-on-year basis, the Eurozone CPI is expected to be -0.2%. A lower than expected reading will be negative for the single currency.
EUR/USD: The EURUSD pair is now trading below the 1.1744 key resistance level. If the pair stays below 1.1744 on a four hourly basis, we will watch the support level at 1.1658 and 1.1589. On the upside, if the pair rises above 1.1744, the next resistance level can be found at 1.1819.
Support : 1.1658 - 1.1589 - 1.1507
Resistance : 1.1744 - 1.1815 - 1.2046
GBP/USD: The GBPUSD pair is trading above the 1.2838 main support level. As long as the price stays above 1.2838, on a four hourly basis, we will see the key resistance level at 1.2947. On the other hand, if the price drops below 1.2838, the next daily support level is holding at 1.2768.
Support: 1.2838 - 1.2768 - 1.2671
Resistance: 1.2947 - 1.3046 - 1.3136
USD/JPY: The USDJPY pair dropped to a daily level of 105.05. As long as the price stays above 105.05, on a daily basis, the downward movement may be limited and we will follow 105.30 and 105.58 as resistance levels again. On the other hand, if the price drops below 105.05, the next support level can be seen at 104.75.
Support : 105.05 - 104.75 - 104.46
Resistance : 105.30 - 105.58 - 105.84
SILVER: Keep your eye on the key resistance level of 24.39 in the Silver Price. In order for the upward movement to gain more power, it needs to break out and stay above 24.39 on a daily basis. Should this occur, we will see 27.87 as the next resistance level. Otherwise, we will follow the support level at 21.26.
Support: 21.26 - 19.55 - 19.04
Resistance: 24.39 - 27.87 - 31.35
02 Oct 20 (Fri)
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