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EUR/USD trading signal - ADP Payrolls - 05 Jul 2018

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Signal details
Entry Price: 
1.1675
Close Price: 
1.1689
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 6 ratings

It is going to be a volatile day for the U.S. dollar with the release of the ADP's private payroll numbers. The data, which is due to be released at 13:15 GMT is forecast to show that the U.S. economy added 190k jobs during the month of June.

This marks a higher forecast compared to 178k private payrolls that were registered the month before. The data is likely to keep the U.S. dollar on the front foot which has so far enjoyed another strong patch of economic data.

Following the release of the ADP payrolls, the ISM non-manufacturing PMI report is scheduled to be released at 15:00 GMT. The forecasts show that non-manufacturing activity slipped to 58.3 in June, down from 58.6 the month before. However, given how sharply manufacturing activity increased there is a potential for an upside surprise.

Later in the day at 19:00 GMT, the FOMC meeting minutes will be released. The minutes cover the FOMC meeting from June where the central bank hiked interest rates by 25 basis points and also announced an additional fourth rate hike this year.

The above three key data releases today will no doubt bring about some volatility in the markets.

Based on the above, today's trading signal is EURUSD. Yesterday, the shared currency was seen trading subdued but we expect that the momentum will prevail in the short term. Today, in late Asia hours, the pair reached 1.1700 and we would expect a pullback to 1.1675 before the rally continues.

eurusd trading signal 05 jul 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.