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EUR/USD binary signal - U.S. Nonfarm payrolls - 02 Feb 2018

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Signal details
Entry Price: 
1.2490
Close Price: 
1.2461
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The U.S. Bureau of Labor Statistics will be releasing the monthly nonfarm payrolls data today at 13:30 GMT. According to the economists polled, the U.S. unemployment rate is expected to remain steady at 4.1% for the month of January. This would mark a fourth consecutive month that the U.S. unemployment rate has remained at such a historic low.

The payrolls data is forecast to show a gain of 184k jobs during the month. The estimates are slightly higher compared to December's payroll gains of 148k and could indicate increased hiring in the economy.

Wage growth, which remains a major key component of the payrolls data is expected to show a gain of 0.3% on a month over month basis. This would indicate the same and steady pace of increase from December. Wage growth remains a key factor which has remained stubbornly weak.

Fed officials continue to pin hopes that that the tightening labor market will eventually lead to an increase in wage growth. The recent Trump tax cuts are also expected to be a boost for wages. As a result, there is a strong possibility that the average earnings could potentially increase.

A better than expected payrolls data could potentially bring forward the U.S. rate hike expectations. This could also help the U.S. dollar to recover from its strong losses earlier in January.

Based on the above, today's forex binary signal is EURUSD. The currency pair once again attempt to rally yesterday but failure to breakout to fresh highs indicates exhaustion. Therefore, we would purchase daily PUT options at 1.2490 for 21:00 GMT expiry time. We expect to see the EURUSD likely to close lower on the day.

binary options signal eurusd 02 feb 2018

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.