USD Settles Lower Despite Unemployment Rate Setting New Record


Friday's nonfarm payrolls report saw the US unemployment rate falling to the lowest levels since 1969. Data from the labor department showed that the unemployment rate fell to 3.6% from 3.8% in March.

Payrolls rose 263,000 in April while average earnings rose 0.2% on the month. The market sentiment was hit as the soft services PMI data overshadowed the payrolls report. The USD fell 0.36% on the day by Friday's close.

 

Eurozone Inflation Estimates Rises in April

The flash inflation estimates from the eurozone for the month of April beat estimates. Data from Eurostat showed that headline inflation rose 1.7% on the year in April. This beat estimates of a 1.6% increase. April's inflation also came out stronger than 1.4% print from March. Core inflation rose 1.2%, beating estimates and advancing from 0.8% from the month before.

 

EURUSD Could Continue Trading Flat

The common currency caught a bid as price initially slipped lower to test the support level at 1.1140. Price was quickly rejected at this level as it led to a strong rebound. The euro gained over 0.19% on the day on Friday. However, the sideways range could continue. The resistance at 1.1226 could still keep a lid on the gains. Unless the common currency breaks out from this range, we expect to see the price action in euro staying muted.

EURUSD

 

WTI Crude Oil at a 4-Week Low

Oil prices slipped to a four-week low, testing 61.48 before pulling back modestly on the day on Friday. The declines in oil prices continue amid concerns of oversupply. US crude oil inventories have posted a bigger than expected draw which offset the supply shortages in pipelines from Russia.

 

Oil Likely to Rebound from 60.33

After breaking past the support level at 62.85, oil prices fell before pulling back from the lows. On today's open, oil prices gapped lower to test the 60.33 support. A rebound from this support level will keep oil prices trading flat within 62.85 and 60.33 levels in the near term.

WTI

 

Gold Rebounds on Renewed Trade Threats

The precious metal gained 0.66% on Friday after initially falling below the 1273 level of support. The rebound in gold came as the ISM's non-manufacturing PMI fell to a year and a half low. The non-manufacturing index fell to 55.5 in April as it extended declines from 56.1 in March. Over the weekend, President Trump renewed his threat about raising tariffs on China. The comments come as US and China trade talks head into a crucial week.

Gold

 

Can Gold Sustain the Bullish Momentum?

The strong surge in gold prices saw the precious metal firmly establishing support near the 1273 region. Price is now trading close to the main resistance level of 1285. On the daily chart, we see that gold prices remain firm, off the 200-day moving average. Overall, gold prices could maintain a sideways range, unless we see a breakout above 1285.

This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.

Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex Majors

Cryptocurrencies

Signatures