Fed Chairman Janet Yellen said on Wednesday during testimony before financial services committee that “If Economy continue to grow at a pace that’s sufficient to generate further improvements in the labor market and to return to our 2% target over the medium term, then our statement indicates that December would be a live possibility"
US Fed fund used by traders and investor to place bets on Central policy shows that 58% chance of rate hike by Fed in Dec policy meeting.
Economists expect payrolls to exceed 200K this month compared to 142K previous month as service sector grew at the second strongest pace since 2005.
Trading using Non Farm Payroll:
If Non Farm Payroll comes above 200K – Short EUR/USD below 1.0850 for the TP 1.0740/1.0700/1.0650 with SL around 1.0910.
If NFP comes slightly weaker than expected that is below 142K (previous month data) - Long EUR/USD above 1.0900 (yesterday high) for the TP of 1.100 with SL around 1.0850.