FOREX NEWS: US NON FARM PAYROLLS – HUGE MOVEMENT AHEAD
Forex News: The Euro continued to climb yesterday on speculation that the ECB will not introduce any form of quantitative easing, but later in the day a better than expected value of the US Manufacturing PMI brought price back down. However, all this up and down movement took place in a very small range, probably due to low volume generated by Labor Day.
The resistance at 1.3900 wasn’t threatened but bullish moves are expected today, mainly because the momentum favors the buyers. The Relative Strength Index didn’t reach an overbought state so the market is not considered overextended and price can continue upwards. Today is an important day for the US Dollar and the main focus will be on the Non Farm employment report which usually generates huge moves so technical aspects will be overshadowed by this release.Fundamental Outlook
The US Non Farm Employment Change (also known as Non Farm Payrolls) is released today at 12:30 pm GMT. The estimated figure is 216K, an increase from the previous 192K and if this forecast comes true, we will most likely see US Dollar strength because the NFP is widely regarded as the most important gauge of employment in the United States and is also a leading indicator of consumer spending.GBP/USD
Manufacturing in the UK showed a surprising improvement yesterday, strengthening the Pound and allowing the pairTechnical Outlook
Yesterday’s high located at 1.6920 will most likely act as resistance today if the pair decides to climb back up again, but from a strictly technical point of view, we expect a move lower which will most likely find support at 1.6880. If this generates a bounce, 1.6920 will become the first bullish target but price action will be heavily influenced by the release of the NFP.Fundamental Outlook
The British Construction PMI is released today at 8:30 am GMT and expected to decrease slightly from the previous 62.5 to 62.2. Since this is a leading indicator of economic health, higher numbers usually strengthen the Pound but its release often has a lesser impact compared to the Manufacturing PMI (released a day earlier). However, the headline of the day remains the US Non Farm Employment report.
We hope you had a profitable trading week and we wish you a relaxing weekend.