Forex Signals Brief for June 7: US Non-Farm Payrolls in Focus
Rowan Crosby • 2 min read
Today’s US non-farm payroll number is looming as one of the biggest we have seen in many months.
What makes this a unique situation is that a poor result could very well spark the market, while a good number could conversely lead to a sell-off. It all comes down to the comments that Fed boss Jerome Powell made recently, suggesting the FOMC is standing ready to cut rates if required.
A key component of that decision will be based around the outlook for the economy, with one of the key ingredients clearly the state of employment. Today markets are anticipating around 185K new jobs to have been created last month, down from 263K last time around.
What makes this an even more highly anticipated event, is that the private ADP survey showed a terrible 27K new jobs created which was a 9-year low and well down on the prior 273K.
Forex Signal Update
The FX Leaders Team finished with one win from the one signal in the USD/JPY in what was a very quiet session for the guys.
NZD/USD – Active Signal
The NZD/USD has continued to pull back since it tagged 0.6650. Price tried to push back up, but as yet hasn’t been able to follow-through. We probably wouldn’t want this one to make a lower low now particularly given the USD will be very volatile later today post-jobs.
EUR/GBP – Active Signal
The EUR/GBP has continued to push strongly to the upside, on the back of a dovish ECB. Price has really accelerated since taking out the 0.8800 level. We are short and looking for resistance at 0.8900 to hold firm for the time being.
BTC has continued to trade in a relatively tight range and as yet hasn’t been able to retest the $8,000 level.
All is certainly not lost for the bulls though, as there seems to be a clear buyer at the $7,500 level. Each time price tries to break lower, you can see that it is getting swept back up. There are even some wicks into that level which suggests the buying is strong.
So that now becomes a very key level. If it doesn’t hold the buyers might be done. If they continue to bid it then we are in for another test of $8,000 and the bull run remains on.