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EUR/USD trading signal - U.S. Nonfarm Payrolls - 06 Jul 2018

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Signal details
Entry Price: 
Close Price: 
No Trade
Expiry Time: 
21:00 GMT
How we trade
Average: 5 (8 votes)

The U.S. department of Labor Statistics will be releasing the monthly official payrolls report today. According to the economists polled, today's payroll figures are expected to show that the U.S. economy added 200k jobs during the month of June. This marks a somewhat slower pace of momentum compared to 223k jobs that were registered the month before.

The data will be released at 13:30 today and also includes the unemployment and wage report. The U.S. unemployment rate is expected to remain steady at 3.8%, unchanged from last month's print. Wage growth is also expected to remain steady, rising a pace of 0.3% on a month over month basis.

The payrolls report could see some short term impact on the currency markets. A continued momentum in the payrolls data could keep the U.S. dollar on the stronger side as the improving data cements expectations of a rate hike from the Federal Reserve this September.

There will of course be revisions to the previous month's payrolls numbers which also needs to be accounted for. Still, the overall trend in the labor market remains strong which is also expected to reflect in today's nonfarm payrolls report.

Based on the above, today's trading signal is EURUSD, the currency pair was seen trading subdued and was not much affected by yesterday's release of the ISM's non-manufacturing PMI or the FOMC meeting minutes.

Price action is currently trading in a rising wedge pattern with consolidation around 1.1680, we would expect to see the euro close higher on the day.

eurusd trading signal 06 jul 2018

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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.