EURUSD: We Expect Only Limited Impact Of Non-farm Payrolls
U.S. non-farm payrolls report is scheduled for today. An upbeat jobs report is expected to increase hopes for a December U.S. interest rate hike, which usually pushes U.S. yields higher and supports the USD. But this time investors are focused mainly on the November 8 election and the reaction to U.S. jobs data may be limited. December Fed hike has been already largely priced in and today’s data will hardly be a game-changer for the Fed’s intentions on rates.
At best, stronger job creation in October – as we expect – may spark some profit taking after recent USD losses. In our opinion this would be a good opportunity to enter a long position and we keep our bid at 1.1020. The spread between U.S. and German 10-year bond yields has diminished since the end of October, which supports the EUR vs. the USD.
We see a scope for EUR/USD gains towards the cloud base at 1.1160. But 1.1107 (50% fibo of August-October fall) seems to be still a quite strong resistance level.
GrowthAces.com (growthaces.com) - Daily Forex Trading Strategies
At best, stronger job creation in October – as we expect – may spark some profit taking after recent USD losses. In our opinion this would be a good opportunity to enter a long position and we keep our bid at 1.1020. The spread between U.S. and German 10-year bond yields has diminished since the end of October, which supports the EUR vs. the USD.
We see a scope for EUR/USD gains towards the cloud base at 1.1160. But 1.1107 (50% fibo of August-October fall) seems to be still a quite strong resistance level.
GrowthAces.com (growthaces.com) - Daily Forex Trading Strategies
