We will focus on the U.S. employment report for March today! The US Non-Farm Payrolls 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.
Last Wednesday, the ADP report showed the US private sector added 129K jobs during March, missing expectations and down from February’s 197K jobs.
The forecast is that the economy added 175K jobs in March after rising 20K the previous month. Average hourly earnings are expected to rise 0.2% for the month, bringing the year-over-year gain in earnings to 3.4%. Policymakers are watching the annualized reading closely to gauge upward pressure on inflation. Released at the same time, traders will pay close attention to the unemployment rate which is expected to stay at 3.8%.
Strong employment report will point to an improving US Economy and support the US Dollar.
EUR/USD: Ahead of the US Jobs Report, the 1.1219 daily support level is critical for the EURUSD pair. As long as the pair stays above 1.1219 on a daily basis, we will watch 1.1285 as a resistance level. On the other hand, If the pair moves down below 1.1219, the next daily support level will be placed at 1.1103.
Support: 1.1219 - 1.1103 - 1.0980
Resistance: 1.1285 - 1.1355 - 1.1450
GBP/USD: Sterling moved up versus the US Dollar in the Asian Session after the report showed that the European Council President Tusk is proposing to offer a 12-month Brexit extension to the UK. In the event that the GBPUSD rise continues, we will see resistance levels at 1.3152 and 1.3217. In contrast, if the pair drops below the 1.3055 level, we will follow 1.2994 as a daily support level.
Support: 1.3055 - 1.2994 - 1.2931
Resistance: 1.3152 - 1.3217 - 1.3291
USD/JPY: The USDJPY reached a three-week high level in the Asian Session with expectations that a protracted trade dispute between the US and China would be resolved soon. We will focus on the key resistance level of 111.85. In order for the rise to gain more momentum, it needs to break out and stay above 111.85 on a four hourly basis. In this case, the daily resistance level will be placed in 112.36. Otherwise, the daily support level will be found in 111.18 again.
Support: 111.18 - 110.35 - 109.57
Resistance: 111.85 - 112.36 - 112.98
GOLD: The GOLD Price is under selling pressure. Ahead of the US Non-Farm Payrolls, the daily resistance level of 1291 is significant. As long as the yellow metal price stays below 1291, on a daily basis, the bearish action may continue and we will see 1278 as a support level. On the other hand, if the price rises above 1291, the next resistance level will be found at 1305.
Support: 1278 - 1266 - 1251
Resistance: 1291 - 1305 - 1316
05 Apr 19 (Fri)