Both Canada and the U.S. are printing their November labor market data today!
I’m only zooming in on EUR/USD’s chart though. Will today’s releases bust prices out of a potential range?
Before moving on, ICYMI, I’ve noted what market playas are expecting from the U.S. non-farm payrolls NFP report. Be sure to check out if you can find valid plays from today’s release!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Jobless claims less than expected as labor market returns to pre-pandemic levels
OPEC, Russia agree to keep boosting oil output, jolting prices
FOMC’s Bostic: finishing bond-buying program before end of Q1 2022 “in our interest”
FOMC’s Daly supports dealing with inflation that’s inconsistent with long-term views on price stability
FOMC’s Barkin supports current pace of tapering
FOMC’s Quarles: Fed would have to consider rate hikes if inflation remains above 4% by next spring
U.S. Senate passes bill to avert government shutdown, sends to Biden for signature
AU AIG construction index slows down from 57.6 to 57.0 in November
Caixin: China’s Nov services activity expands at slower pace amid COVID-19 flareups and fast inflation
Japan services sector grows at fastest pace since 2019 in November
Global stocks wobble as Didi delisting revives U.S.-China worries
European stocks fall as Omicron worries rattle investors
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone’s retail sales data at 10:00 am GMT
BOE MPC member Saunders to talk inflation and monetary policy at an online event at 11:00 am GMT
U.S. NFP and labor market numbers at 1:30 pm GMT
Canada’s jobs data at 1:30 pm GMT
U.S. ISM services PMI at 3:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: EUR/USD
Thought you’re in for a chill Friday trading? Not so fast! Both Canada and the U.S. are publishing their November labor market data, yo!
More eyes are tracking Uncle Sam’s numbers, though, which is why I’m focusing on EUR/USD’s chart for today.
The pair is trading just under 1.1300, which is near the 200 SMA and the mid-range levels on the 1-hour time frame.
Technicals favor of the bulls as EUR/USD hangs near the 200 SMA and mid-range levels after the 100 SMA crossed above the 200 SMA on the 1-hour time frame.
But market geeks are gearing up for a stronger U.S. non-farm payrolls (NFP) report. Not only are private payrolls expected to improve from 531K to 550K, but the unemployment rate is also expected to dip from 4.6% to 4.5% while average earnings maintain its 0.4% monthly increase.
Strong labor market numbers would give the Fed more confidence to speed up its tapering timeline by its December meeting. EUR/USD could trade firmly below the 200 SMA and make its way back to its 1.1200 lows.
If traders focus on risk-taking, though, or if they take profits from their long dollar trades ahead of the weekend and before we know more about the Omicron variant, then EUR/USD traders could give momentum to the SMA crossover and push the pair to the 1.1370 inflection point.
