All eyes will be on the 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 the farming industry employment. The US Jobs Report is an important determinant of a Fed rate hike in the upcoming decisions.
The US Dollar gave up some gains after 16-month peaks against all major currencies. Yesterday’s phone call between U.S. President Donald Trump and Chinese President Xi Jinping gave hope that could signal an easing in U.S.-China trade tensions.
Wednesday’s the ADP Nonfarm Employment Change Number, printed at 227k, which is above the 189k reading expected.
The US Jobs Report for October will be released on Friday. The US Nonfarm Payrolls is expected to show the creation of 191K jobs in October, after rising 134K the previous month. The Unemployment Rate is expected to stay at the 49-year low level of 3.7%. Average hourly earnings will be another release to be followed closely at the same time and are expected to ease to 0.2% from 0.3%.
The upbeat US data indicating the tightening cycle by the Federal Reserve will continue. Strong employment report will point to an improving US Economy and support the US Dollar.
In addition to US Jobs Report, we will focus on a report on activity in the manufacturing sector from Europe today. German Manufacturing PMI will be announced and it is expected to be 52.3 in October. While Eurozone Manufacturing PMI is expected to come out at 52.1, the same as the previous number.
Technical Analysis:
EURUSD: Ahead of US Non-Payrolls, the EURUSD pair is currently trading below the 1.1446 major resistance level. In order for the upward movement to gain more momentum, it needs to break out and stay above 1.1446 on a four hourly basis. Should this occur, the next resistance level will be at 1.1531. Otherwise, the rise may be limited and we will see the daily support levels at 1.1367 again.
Support: 1.1367 - 1.1262 - 1.1188
Resistance: 1.1446 - 1.1531 - 1.1607
GBPUSD: The GBPUSD pair jumped up significantly yesterday, its biggest one-day gain since April 2017. As long as the pair stays above 1.2961 on a daily basis, the rise may continue. At this point, we will see 1.3050 and 1.3152 as resistance levels. On the other hand, if the price pulled back below 1.2961, the support level can be found at 1.2844
Support: 1.2961 - 1.2844 - 1.2712
Resistance:1.3050 - 1.3152 - 1.3241
USDJPY: The USDJPY moved up above the 112.46 key level in the Asian Session. As long as the price stays above 112.46 on a four hourly basis, we might see an upward movement. At this point, we will follow 113.63 as a resistance level. On the other hand, if the price drops below 112.46, the next support level can be found at 111.66.
Support: 112.46 – 111.66 - 110.86
Resistance: 113.63 – 114.63 - 115.61
GOLD: The Gold price is currently trading below the 1235 major resistance level. In order for the upward movement to gain more momentum, it needs to break out and sustain above 1235 on a four hourly basis. In this case, the next daily resistance level will be placed in 1243. Otherwise, the rise may be limited and we will see the support level at 1225 again.
Support: 1225 - 1215 - 1207
Resistance: 1235 - 1243 - 1256
02 Nov 18 (Fri)
07:10 am
