Non Farm Payroll Update

[CorporateProfit]

US Department of Labor Report

Affected assets: EURUSD, GBPUSD
Usually, the US Department of Labor releases its reports on the first Friday of a month, but this week's publication will take place on Thursday as tomorrow is a day-off due to the celebration of Independence Day. Job reports have a remarkable impact on the market and investors are getting ready for such publications beforehand. That is why, this week, the sentiment is rather nervous and tense. Analysts anticipate that today’s data will demonstrate a slight improvement in the labor market conditions. In particular, the number of newly created jobs is expected to increase by 2.9 million. Importantly, that would be the highest increase on record. However, last month, along with the rise in employment, the number of unemployed people also grew. This time, analysts forecast a decline in the unemployment rate to 12.3% from 13.3%. If these forecasts are confirmed, it would be a sign that the American economy started recovering gradually, so the US dollar is likely to strengthen amid that.

The EUR/USD currency pair has once again approached the support near 1.1180/1.1190 from where the price rebounded, triggering a bullish run. Probably, fluctuations in the area of 1.1275-1.1285 will slow down the uprise. The pair may even come under bearish pressure amid the expected news, which will push it towards 1,1180/1,1190.


While correcting from 1.2250, the GBP/USD pair returned to the level of 1.2500 where the movement slowed down. Probably, the area of 1.2500/1.2540 will serve as the resistance which will fuel the selling pressure thus pushing the price to 1.2350. Alternatively, if the pair breaks above the level of 1.2550, then it will have every chance of reaching 1.2620.



Will USD go UP or DOWN?