The labor data will clarify the FOMC intentions
Yesterday's US data were positive. The ADP showed an increase by 173K in May against 166K in April. The weekly number of jobless claims fell from 268K to 267K.
This creates the prerequisites for a good key labor data today. The NFP is forecasted at 164K in May vs. 160K in April. The general unemployment rate is expected to decrease from 5.0% to 4.9%. Average hourly earnings are expected to grow by 0.2%
Also, the factory orders are forecasted at 0.9% in April. The Ism non-manufacturing PMI is expected at 55.5 against the previous 55.7. The UK Services PMI is expected to rise from 52.3 to 52.5.
How to trade
After the yesterday’s movement, the pair GBP/USD kept the key levels on the hourly chart: 1.4482, 1.4390, 1.4357. The pair may continue to decline if drops below 1.4390. We would buy put options if the pair falls below 1.4390. We would buy call options if the pair rises above 1.4482.
Expiry time: 20:00 GMT