Forex News: Buckle Up for the Final NFP Report of the Year
Forex News: The pair continued on a downward path yesterday but price action was mostly choppy due to the lack of economic releases. The speech of ECB President Draghi did not have a strong impact on the single currency.
Bearish momentum is starting to fade as we see more and more candles with long wicks and also, the pair hasn’t made any significant advances yesterday. This suggests that a move up will soon follow but as long as the pair is trading below 1.1825 and below the 50 period Exponential Moving Average, the bias is negative. Today the US jobs data will have a strong impact on the pair’s direction, so the technical aspect will be secondary.
There’s nothing important on the calendar for the Euro but the US Dollar will be heavily affected by the most important US jobs report: the Non-Farm Employment Change (aka Non-Farm Payrolls). The report shows changes in the total number of employed people, excluding the farming sector and is a leading indicator of consumer spending. The time of release is 1:30 pm GMT, the expected reading is 198K (previous 261K) and higher numbers are beneficial for the US Dollar.
The pair dropped into the support at 1.3320 early in yesterday’s trading session but the Pound recovered the losses after an EU official mentioned that progress has been made on Brexit negotiations.
The pair’s movement remains very dependent on any Brexit news that come out without warning but from a technical perspective, as long as price is not clearly above the 50 period Exponential Moving Average, the bias remains mostly bearish. Of course the US Dollar will be affected today by major employment data, so the technical side will be overshadowed by the release.
The British Manufacturing Production is today’s only notable indicator for the Pound. The report shows changes in the total value of goods produced by manufacturers and usually has a medium impact on the currency, with higher numbers strengthening it. The time of release is 9:30 am GMT and the expected change is 0.1%.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.