In the US, the November’s Job Reports will be announced 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 the farming industry employment. It is a significant determinant of a Fed rate hike in the December’s Decision.
The U.S. Dollar showed a downward movement yesterday against the major currencies as traders thought that December’s rate hike could be the last before Federal Reserve hits the pause button on its tightening cycle.
The ADP Nonfarm Employment Change came out lower than the estimate and previous month’s number yesterday and it rose to 179K.
US Nonfarm Payrolls is expected to see 200K jobs created after rising 250K the previous month. The Unemployment Rate is expected to stay at 3.7% a 49-year low. Average hourly earnings will also be significant and are expected to be 0.3% higher than the previous month's number of 0.2%.
The Fed has already indicated one more rate hike for December Meeting. It would be the fourth hike this year, and trades are focused on how much further the tightening cycle has to run. An upbeat employment report will point to an improving US Economy and support the greenback.
Moreover, we will focus on the Eurozone Gross Domestic Product today. The GDP Number for the third quarter is expected to stay at 1.7% as the same as the previous number.
Technical Analysis
EURUSD: Ahead of US Nonfarm Payrolls, the EURUSD pair is currently trading above the 1.1367 daily level. As long as the price sustains above 1.1367, on a daily basis, the rise may continue and we will see resistance levels at 1.1446. On the other hand, if the pair drops below 1.1367, the next support level can be found at 1.1262.
Support: 1.1367 - 1.1262 - 1.1188
Resistance: 1.1446 – 1.1531 - 1.1607
GBPUSD: The GBPUSD pair jumped up from the daily level of 1.2712 yesterday. In the event that the upward movement continues, we will see 1.2844 and 1.2961 as main resistance levels. Although, if the price breaks down below 1.2712, the next support level will be at 1.2624.
Support: 1.2712 – 1.2624 – 1.2494
Resistance: 1.2844 – 1.2961 - 1.3050
USDJPY: The USDJPY pair showed an upward reaction from 112.46 yesterday. As long as the price stays above 112.46 on a four hourly basis, the fall may be limited and we will see the 113.63 key resistance level again. On the other hand, if the price falls below 112.46, the daily support level can be found at 111.66.
Support: 112.46 - 111.66 - 110.86
Resistance: 113.63 - 114.63 - 115.6
GOLD: The GOLD Price reached the major resistance level of 1243 and then pulled back yesterday. In order for the upward movement to gain more momentum, it needs to go beyond and stay above 1243 on a daily basis. Otherwise, we will see 1235 and 1230 as support level again.
Support: 1235 – 1230 - 1225
Resistance: 1243 – 1249 - 1256
07 Dec 18 (Fri)
07:20 am
