The first NFP and U.S. unemployment data for this year is set to be released today in the U.S session, where trading volume has been very low today since the start of the Asian session. The investors are waiting for the job numbers data, which usually sets up the whole frame of mind for them as to which direction to take on which pair or commodity. This seems to be quite a mainstream thing as it always happens since job numbers are valuable for not only the U.S. economy, but impacts other markets as well.
One important aspect that you traders must understand right now is that NFP data may not drive the market today as strongly as it normally does. The reason being that at the start of the new year, the job numbers are not so much weighted towards the performance of the economy, since many of the economic indicators are just carried forward from the past release but the benchmarks, policies, and even prospects of those economic parameters change with the change of quarter and as well as the whole new year.
Last Year’s NFP
What we saw last year in January and February was that even though the data for the job numbers of the U.S. was one-sided, but the movement in the market was not according to the expectation, which led to a sort of disappointment to the traders who trade heavily on the release of this data.
What we recommend for you today is that trade what you see – both in terms of fundamental outcomes of the data and as well as the technical levels of the major pairs and gold. The euro is bearish and would remain good to sell if it remains below 1.3713, while the British pound entered and closed in short term bullish area where buying it above the support level of 1.6440 would be very good, but below that it would drop down sharply. Whereas, gold is in range and would be testing 1242 and 1249 resistance levels if the job numbers outcome disappoints the USD investors.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org