A Huge Day For Trading: Focus On The US Non-Farm Payrolls Today
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.
This week's data showed that services activity weakened by more than expected, while weekly jobless claims unexpectedly rose to 207,000 for the week ended Jan. 1.
The December Federal Reserve meeting raised expectations of an early interest rate hike and also put the issue of reversing the bank's bond purchases in play.
Fed policymakers said at their December meeting that a very tight job market and unabated inflation might require it to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, according to minutes from that meeting. The more hawkish than expected views of U.S. central bank officials pushed U.S. Treasury yields higher.
US Nonfarm Payrolls are expected to rise 400K in December from 210K in the previous month. The Unemployment Rate is expected to drop to 4.1% from 4.2%. Average hourly earnings are expected to come out 4.1%, year on a year basis.
EURUSD: The EURUSD pair moved down below the 1.1307 main resistance level. As long as the EURUSD pair stays below 1.1307, on a four-hourly basis, we will see 1.1237 as the support level. On the upside, if the price rises above 1.1307, the next resistance level will be at 1.1365
Support: 1.1237 - 1.1165
Resistance: 1.1307 - 1.1365 - 1.1421
GBPUSD: Keep your eye on the 1.3517 main support level in the GBPUSD pair. As long as the pair stays above 1.3517, on a daily basis, we will follow 1.3599 and 1.3688 resistance levels. Otherwise, if the price drops below 1.3517, the next resistance level will be at 1.3392.
Support: 1.3517 - 1.3392
Resistance: 1.3599 - 1.3688 - 1.3784
EUR/JPY: The EURJPY pair is now trading below the 131.26 key resistance level. As long as the price stays below 131.26 on a daily basis, we will follow the key support level at 130.23. On the upside, if the pair rises above 131.26, the next major resistance level will be at 132.07.
Support: 130.23 - 129.33 - 128.39
Resistance: 131.26 - 132.07 - 132.96
GOLD: The Gold Price is now trading above the 1785 major support level. As long as the price stays above 1785 on a four-hourly basis, we will see the daily resistance level at 1805. On the downside, if the price breaks down below 1785, the next support level will be at 1763
Support: 1785 - 1763 - 1745
Resistance: 1805 - 1829 - 1854
07 Jan 22 (Fri)