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EUR/USD binary signal - ADP Non-farm employment change - 06 Dec 2017

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Entry Price: 
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Expiry Time: 
21:00 GMT
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The private payrolls firm ADP and Moody's analytics will be releasing the monthly private payroll figure today. According to the economists polled, private sector hiring in the U.S. is expected to show 191k jobs being added for the month of November. This is somewhat lower compared to October's print of 235k jobs.

We can expect to see some revisions to the previous two months data. However, the rebound in the jobs came after the U.S. recovered from a brief spell of the hurricanes that distorted the jobs report in September. The October's strong print was attributed to increased activity after the hurricanes.

Overall, a headline print of 191k jobs is in line with the consensus and suggests that private sector hiring was moving at a steady pace. The job market is expected to tighten even further in the coming months with the Federal Reserve officials hopeful that this could raise wages higher eventually.

Although the ADP report is not the same as the non-farm payrolls report which is the official unemployment report, the data could potentially set the expectations for this Friday's official figures. This week's payroll numbers will be key for the markets as central bank officials will be closely watching the numbers.

The central bank is expected to raise interest rates next week which means that the bar for holding back the rate hike is very high. Unless the jobs report thoroughly disappoints, which would be very surprising given the strong economic indicators, the Fed's rate hike looks to be a done deal.

Based on the above, today's binary trading signal is EURUSD. The U.S. dollar was seen trading stronger as the currency pair closed bearish yesterday. Price action is currently consolidating into a descending triangle pattern.

Therefore, we are looking to purchase daily CALL options at 1.1831 for 21:00 GMT expiry time. We expect EURUSD to post a minor pullback to 1.1831 before closing higher on the day.

binary options signal eurusd 06 Dec 2017

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.