News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/mnUKqZLTWc
  • The S&P 500 paused a record rally amid weakness in the technology sector. Profit-taking activities appeared to be gathering pace as traders awaited corporate earnings. The US Dollar fell to a six-week low. https://www.dailyfx.com/forex/market_alert/2021/04/20/SP-500-Index-Falls-as-Tech-Retreats-Nikkei-225-and-ASX-200-May-Follow-Lower.html https://t.co/sPu0KKaqLw
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-04-20
  • Update on #Cryptocurrencies #BITCOIN -3.34% #BITCOINCASH -13.38% #ETHEREUM -7.21% #RIPPLE -16.38% #LITECOIN -11.05% #DOGECOIN +9.09%
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePT7Yu8 https://t.co/YBisCdODkL
  • Wow. Paleontologists estimate that 2.5 billion T Rexes existed in all of time. It's estimated that 108 billion humans have existed thus far. Let's see if Elon Musk fancies himself John Hammond to balance those numbers
  • EUR/USD and GBP/USD are both testing resistance levels of note, with Cable putting in a massive move to start the week. Get your market update from @JStanleyFX here:https://t.co/hUpHKARmBt https://t.co/kF1Xvf8x2U
  • 10 out of 11 S&P 500 sectors ended lower, with 66.9% of the index’s constituents closing in the red. Consumer discretionary (-1.14%) and information technology (-0.88%) were among the worst performers, whereas real estate (+0.29%) registered a small gain. https://t.co/BhAokfrkcH
  • What are some key takeaways for trading gold? Get your free insight here: https://t.co/lnxaQOsgid https://t.co/uc8ptamQ72
  • RT @KyleR_IG: With the @RBAInfo meeting minutes today, I had a look at a few $AUD/USD correlations. It's clearly been a commodity price an…
Strong U.S. Non-Farm Payrolls (NFP) Report to Tame EUR/USD Rebound

Strong U.S. Non-Farm Payrolls (NFP) Report to Tame EUR/USD Rebound

David Song, Strategist

Trading the News: U.S. Non-Farm Payrolls (NFP)

Image of DailyFX economic calendar

Updates to the U.S. Non-Farm Payrolls (NFP) report may tame the recent rebound in EUR/USD as the world’s largest economy is anticipated to add another 195K jobs in June.

Moreover, Average Hourly Earnings are expected to uptick to an annualized 2.8% from 2.7% in May, and signs of stronger job/wage growth should keep the Federal Open Market Committee (FOMC) on course to implement four rate-hikes in 2018 as the central bank largely achieves its dual mandate for full-employment and price stability.

In turn, the FOMC may largely reiterate that ‘gradually returning interest rates to a more normal level as the economy strengthens is the best way the Fed can help sustain an environment in which American households and businesses can thrive,’ and Chairman Jerome Powell & Co. may show a greater willingness to adopt a more aggressive approach in normalizing monetary policy as ‘economic growth appears to have picked up in the current

quarter, largely reflecting a bounceback in household spending.’

However, a batch of lackluster data prints may fuel a larger recovery in EUR/USD as it encourages FOMC officials to retain their current projections for a neutral Fed Funds rate of 2.75% to 3.00%, with the greenback at risk of exhibiting a more bearish behavior over the near-term as it dampens the outlook for growth and inflation.

Impact that the U.S. NFP report has had on EUR/USD during the previous print

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

APR

2018

06/01/2018 12:30:00 GMT

190K

223K

+8

-14

April 2018 U.S. Non-Farm Payrolls (NFP)

EUR/USD 10-Minute Chart

Image of EURUSD 10-Minute chart

The U.S. economy added 223K jobs in May following a 159K expansion the month prior, while the Unemployment Rate unexpectedly narrowed to an annualized 3.8% from 3.9% in April as the Labor Force Participation Rate slipped to 62.7% from 62.8% during the same period. At the same time, Average Hourly Earnings increased 2.7% per annum amid forecasts for a 2.6% print, with the gauge for Average Weekly Hours holding steady at 34.5.

The initial downtick in EUR/USD was short-lived, with the pair largely consolidating throughout the day to close at 1.1657. Sign up and join DailyFX Strategists Michael Boutros and Christopher Vecchio LIVE to cover the fresh updates to the NFP report.

EUR/USD Daily Chart

Image of EURUSD daily chart
  • Keeping a close eye on the Relative Strength Index (RSI) as it threatens the bearish formation from earlier this year, but need to see EUR/USD also break trendline resistance for a more meaningful run at the June-high (1.1852).
  • Need a close above the 1.1810 (61.8% retracement) hurdle to open up the topside targets, with the first region of interest coming in around 1.1970 (23.6% expansion) followed by the 1.2140 (50% retracement) area.
  • However, failure to hold above the 1.1640 (23.6% expansion) to 1.1680 (50% retracement) region bring the June-low (1.1508) on the radar, with a break/close below the 1.1510 (38.2% expansion) region opening up the Fibonacci overlap around 1.1390 (61.8% retracement) to 1.1400 (50% expansion).

For more in-depth analysis, check out the Q3 Forecast for EUR/USD

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide!

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES