When is the US monthly jobs report (NFP) and how could it affect EUR/USD?
|US jobs report overview
Friday's US economic docket highlights the release of keenly watched US monthly jobs report, popularly known as NFP. The report is scheduled to be released at 1330GMT and is expected to show that the US economy added 200K new jobs during the month of November, down from previous month's upbeat reading of 250K.
Meanwhile, the unemployment rate is expected to hold steady at 3.7% and average hourly earnings, which have gained more traction in the recent past, is anticipated to have grown at a slightly faster pace of 0.3% m/m, with yearly wage growth standing at 3.1%.
How could the data affect EUR/USD?
Ahead of the key release, Yohay Elam, FXStreet's own Analyst provides important technical levels to watch for trading the major: "Support awaits at 1.1360 which provided support earlier in the day and served as both support and resistance in November. A more significant cushion is 1.1325 which was the gap line seen at the wake of the week, and it also provided some support on Thursday. The former double bottom and the round number of 1.1300 follows. Lower, 1.1270 and the 2018 trough of 1.1215 are noteworthy."
"1.1380 is a minor line of resistance after working as a swing high early in the week. 1.1405 was a stubborn cap late in November. 1.1420 was the peak seen earlier this week. 1.1435 was \a peak beforehand. Further up, 1.1475 and 1.1500 are notable," he added further.
Key Notes
• Non-Farm Payrolls Preview: defying the economic odds
• US NFP Preview: Major Banks expectations from November payrolls report
• EUR/USD is well-supported ahead of the NFP – Confluence Detector
About the US monthly jobs report
The nonfarm payrolls released by the US Department of Labor presents the number of new jobs created during the previous month, in all non-agricultural business. The monthly changes in payrolls can be extremely volatile, due to its high relation with economic policy decisions made by the Central Bank. The number is also subject to strong reviews in the upcoming months, and those reviews also tend to trigger volatility in the forex board. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish), although previous months reviews and the unemployment rate are as relevant as the headline figure, and therefore market's reaction depends on how the market assets them all.
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