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EUR/USD Signal - U.S. Nonfarm payrolls - 04 Aug 2017

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Expiry Time: 
20:00 GMT
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The U.S. nonfarm payrolls report for the month of July will be released the Bureau of Labor statistics today at 12:30 GMT. According to economists polled, today's data is expected to show that payrolls rose 181k for the month of July. This is slightly lower than June's 222k jobs.

The U.S. unemployment rate is however expected to fall a notch lower to 4.3% from 4.4% previously. Wages, which remains an integral part of the payrolls report is expected to edge higher, rising 0.3% on the month. Wage growth in the U.S. has remained subdued for a while.

A better than expected payrolls report could help the U.S. dollar to sustain some gains. The USD has remained rather weak as it was hit by sentiment based on the uncertain policies from Washington as well as the Federal Reserve. The markets have assigned a less than 50% chance of another rate hike from the Fed for the rest of this year.

Even a better than expected payrolls report is unlikely to change the trend in the U.S. dollar which remains weak. A temporary pullback could however bring in fresh buyers into the market which could see the euro buying continuing. However, on the flipside, if the payrolls report fails to show proper wage growth, the bearish case could see further selling in the U.S. dollar as a result.

Based on the above data, today's binary trading recommendation is EURUSD. We expect to see a modest pullback in the currency pair. Given that today is the last trading day of the week, traders are likely to take profits before the weekend.

The EURUSD continues to keep its bullish momentum intact with price action showing no signs of giving back the strong gains made. However, despite the common currency rising to fresh 2-year highs, the risk of a downside correction remains.

We trade daily PUT options in EURUSD at 1.1860 for a 20:00 GMT expiry time. A break down below 1.1860 would suggest further downside in price as a result and we expect to see EURUSD close lower on the day.

forex binary signal eurusd 04 Aug 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.