By Russell Glaser – Yesterday’s weaker than expected unemployment data from the U.S. may have been a prelude to today’s key non-farm employment change. Traders will be watching both the overall estimate for job losses at -63k, but also private job additions which are forecasted to come in at +100k.
Key Data Releases:
GBP – 08:30GMT – PPI Input m/m
Expectations: -0.4%. Previous -0.2%.
Inflation concerns are growing in the UK as the Bank of England (BOE) has kept interest rates at an all time low of 0.5%. Yesterday the BOE reaffirmed it’s commitment to low interest rates by holding the rate steady while maintaining its balance of bonds on account.
Currently the Cable is testing the 61.8% Fib retracement from last August’s high. The GBP/USD has failed to break this level twice this week. A breach above this price should take the pair to the resistance level at 1.6070.
USD – 12:30GMT – Non-farm employment change
Expectations: -63k. Previous -125k.
All eyes will be on the non-farms report from the Bureau of Labor Statistics. As mentioned above, traders will also be following the private job additions. If the U.S. economy adds more than 100k new jobs, the greenback should strengthen against the majors. Given the month long trend of negative U.S. economic data, along with a rebound of the euro, this scenario seems unlikely. Resistance levels for the EUR/USD come in at 1.3270 and 1.3350.
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