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EUR/USD Signal - U.S. Nonfarm payrolls - 07 April 2017

Signal details
Entry Price: 
1.0600
Close Price: 
1.0593
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
5/5 of 4 ratings

The U.S. Bureau of labor statistics will be releasing the monthly payrolls report for the month of March today. The data is expected to show that the U.S. unemployment rate remained steady at 4.7% from the previous month while the economy is forecast to add 174k jobs for the month. During the month, the forecasts are that the average hourly earnings increased 0.2%, rising at the same pace as the previous month.

The payrolls data will no doubt overshadow all other economic releases for the day with more attention being given to the wage growth. A higher pace of increase in wages could mean that consumer spending will also increase which could be an additional pressure on inflation. This in turn is expected to keep the central bank to continue hiking interest rates. With the most recent private payrolls report showing a blockbuster month, expectations are high.

Earlier in the week, private payrolls firm, ADP released the monthly private nonfarm payrolls data. The report released by Moodys Analytics and ADP showed that the private businesses in the U.S. added 263k jobs during the month of March. It was significantly higher than the forecasts of 184k.

ADP said that based on the private hiring, the U.S. economy was seen expanding at a healthy pace and this in turn is raising expectations that today's official payrolls figures will once again beat the estimates, which look conservative at 174k. Focus will of course be on the wage growth as well, which has moderated since January this year, after hitting highs of 2.7%.

Besides the U.S jobs report, markets will be a bit cautious as a risk averse sentiment is starting to overtake the markets amid reports of the U.S. airstrikes against Syria.

For today’s binary options signal, we recommend daily CALL options at 1.0600 in EURUSD for a 20:00 GMT expiry time as we expect to see a recovery in the single currency as investors are likely to book profits by the end of the week.

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.