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EUR/USD binary signal - U.S. Payrolls - 06 Oct 2017

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20:00 GMT
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The United States Bureau of Labor Statistics will be releasing the monthly nonfarm payrolls report today. The data is expected to make an impact on the U.S. dollar crosses, when it is released at 12:30 GMT today.

According to the estimates from economists, the U.S. economy is expected to add 82k jobs during the month of September. This is weaker than the average trend and down from August's payrolls print of 156k. The weakness in the employment change is expected due to the hurricanes that hit the U.S. shores last month.

The U.S. unemployment rate is expected to remain unchanged however at 4.4% while the average wages is expected to rise 0.3% on the month. This is expected due to the labor shortages during the month. Overall, the September payrolls data is likely to be distorted and past history shows that subsequent revisions to the initial data always points to the upside.

Investors are therefore likely to look through the September data as a result. However, in the near term, the headline numbers could potentially impact the U.S. dollar. On Wednesday, we already saw that the markets gave a muted response to the ADP payrolls data.

The Federal Reserve had signaled that it was also expecting a weaker print but highlighted that this was due to temporary factors. Therefore, while we expect the markets to ignore today's numbers, there is a risk of a potential upside surprise. A better than expected print could bring back the optimism in the U.S. dollar as the economy would have added better than expected jobs despite the temporary factors.

Based on the above, today's forex binary options trading is EURUSD. The currency pair has weakened somewhat but price action was see testing the support level at 1.1700 region.

Therefore, we purchase daily CALL options at 1.1700 as we expect to see the EURUSD hold and rebound off this support level. This upside view is also validated by the descending wedge pattern that was formed. We expect EURUSD to close higher on the day as a result.

binary options signal eurusd 06 Oct 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.