Market Trying to Find Balance Point Before NFP


On Thursday the euro/dollar closed down. The price movements were similar to a sideways with a bearish tendency. The euro bulls made three attempts to break 1.1150 and all three were unsuccessful. The dollar strengthened after the release of US stats for the labour market which were better than expected. This data had real significance before the publication of the NFP. The euro/dollar fell to 1.1052.

Job creation in the US private sector during June stood at 172k (ADP figures). The number of unemployment benefit applications for te week ending 2nd July fell to 254k.

Market Expectations:

In Asia the euro is trading slightly up against the dollar. Don”t expect any real movements before 15:30 EET. A consolidation of the pair at 1.1080 is expected in the first half of today.

Market participants have decided that they are going to wait and see what the NFP brings. What the market will do after the NFP is out is hard to say since the payrolls are notoriously hard to predict due to the constant reassessments and corrections made to figures.

Day”s News (EET):

  • 08:45, Swiss unemployment level for June;
  • 09:00, German May balance of trade;
  • 15:30, Canadian employment changes and unemployment level for June. US average hourly wage and NFP for June;
  • 22:00, US May consumer financing.

Technical Analysis:

Intraday forecast: minimum: n/a, maximum: n/a, close: n/a.

Euro/dollar rate on the hourly. Source: TradingView

The 45 degree is a support this Thursday. My forecast is for up to 15:30 EET. How the NFP will come out is anyone”s guess. I do know, though, that last month”s week report saw the euro/dollar rise 200 points in three hours. The market expects that 170k jobs were created in June. How the traders will react to the report after the Brexit is also hard to say, but the price fluctuations will be heavy if there is any marked difference between the forecasts and the real figures.

Earn from currency market fluctuations by investing in a Forex Investment Portfolio.

Source:: Market Trying to Find Balance Point Before NFP

About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

Related Posts

Leave a Reply