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Talking Points:

- The March US Change in Nonfarm Payrolls report is due on Friday at 12:30 GMT.

- Markets are expecting the weak February print of 20K to be a one-off; consensus calls for 170K.

- Retail traders are selling the US Dollar, despite significant gains over the past week-plus.

Join me on Mondays at 7:30 EDT/11:30 GMT for the FX Week Ahead webinar, where we discuss top event risk over the coming days and strategies for trading FX markets around the events listed below.

04/05 FRIDAY | 12:30 GMT | USD Change in Nonfarm Payrolls & Unemployment Rate (MAR)

The main issue for the US Dollar when it comes to the March US Nonfarm Payrolls report is whether or not the US labor market rebounded after the US government shutdown. After all, the February reading was a meager 20K. But with the unemployment rate still near cycle lows at 3.8%, there is still evidence that the labor market remains tight by the FOMC’s standards. Market participants are expecting that March reading will show a strong rebound, given that jobless claims remain low. Accordingly, current expectations for the data are calling for the unemployment rate to hold at 3.8%, and for the headline jobs figure to come in at +170K.

us nfp, us nfps, us wage growth

According to the Atlanta Fed Jobs Growth Calculator, the economy only needs +111K jobs growth per month over the next 12-months to sustain said unemployment rate at its current 3.8% level.

Pairs to Watch: DXY Index, EURUSD, USDJPY, Gold

EURUSD Price Chart: Daily Timeframe (June 2018 to April 2019)

eurusd price chart, us nfp, us nfps

EURUSD has been on a losing streak since the Fed’s March meeting, falling all but one day since March 20. Momentum is firmly to the downside right now, with price squarely below the daily 8-, 13-, and 21-EMA envelope in sequential order. Likewise, daily MACD and Slow Stochastics are trending lower, with the former having crossed below its signal line last week; the latter is nearing a sell signal. A test of the yearly low at 1.1176 is not out of the question this week (nor would be a break to fresh yearly lows).

Read more: Top 5 Events: March ECB Meeting Minutes & EURJPY Price Outlook

FX TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

--- Written by Christopher Vecchio, CFA, Senior Currency Strategist

To contact Christopher, email him at cvecchio@dailyfx.com

Follow him in the DailyFX Real Time News feed and Twitter at @CVecchioFX