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NFP Effect On EURUSD Pair | News Trading | ForexTube | Forex Fun

By on May 28, 2020 0 68 Views
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The current USD movement is either a correction or an indication that the poor US currency has finally found a temporal bottom. That will likely be confirmed with the upcoming NFP report, particularly considering last month’s reaction to the release and the latest ADP report.

Earlier this month, the big surprise weren’t numbers, but the fact that the NFP report was actually able to move the market. As of lately, it had been much about expectations and little about action.

USD/JPY: Strong US wage inflation would add credence to the rally
Strong wage price inflation numbers would not only boost rate hike bets, but also improve the odds of the Fed beginning the balance sheet runoff program in September.

Weak wage growth numbers would remind traders that the three-day rally isn’t backed by the steeper yield curve, thus leading to a fresh sell-off towards key support levels of 108.71-108.13-108.00.

Could US jobs data aid dollar rebound?
It is now all down to Friday’s official nonfarm payrolls report. If this shows further strength in the labour market and another rise in wages then calls for a December rate rise may increase, triggering further dollar buying interest. Conversely, a very weak jobs report may have the opposite effect.

NFP Jobs Created and Potential USD Reaction

· 210,000 Strongly Bullish

· 180,000-210,000 Moderately Bullish

· 150,000-180,000 Moderately Bearish

· 150,000 Strongly Bearish

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