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EUR/USD binary signal - UK Services PMI - 05 May 2017

Signal details
Entry Price: 
1.0980
Close Price: 
1.0995
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
4.8/5 of 5 ratings

The monthly United States nonfarm payrolls report is due for release today at 1330 GMT. Economists polled are expecting to see the U.S. unemployment rate inch back higher to 4.6%, up from 4.5% while the average number of jobs added during April is forecast to rise 194k. The average earnings is also forecast to rise 0.3%, up from 0.2% previously.

The payrolls report will no doubt gain larger than usual attention after the surprising disappointment in March. During the month, the U.S. economy was seen adding just 98k jobs during the month, missing forecasts by a big margin. At the latest FOMC meeting, Fed officials brushed aside the weak payrolls print calling it transitory while maintaining that the central bank is on track to hike interest rates in June.

In this aspect, today's payrolls report will be important as a better than expected print a return to 150K+ headline print would signal that indeed, March was an anomaly. Earlier in the week, private payrolls data released by ADP and Moody's analytics showed that the U.S. economy added 177k jobs in the private sector. This was slightly below the 178k forecast. But previous month's numbers were revised down to show 255k jobs for March, down from 263k that was originally reported.

The U.S. dollar is trading mixed across the board and was seen to be weaker against the euro. Soft economic prints such as the quarterly employment productivity and trade balance figures kept the USD subdued against the euro, which led EURUSD to rally to a new 6-month high and is seen trading short of the 1.1000 handle.

For today's binary options trading signal, we look at EURUSD where PUT options are recommended. Following the strong rally that held up for the most part of this week, we expect that the euro will be pulling back into Friday's close. Look to purchase daily PUT options near 1.0980 for a 20:00 GMT expiry time as the common currency could be at risk of a pullback against a hawkish print in the payrolls report due today.

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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.