USD Gets a Boost from NFP Report
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
The American currency remains strong against the Euro. On Monday, September 10th, the major currency pair is trending lower and trading close to 1.1550. USD received support from recent labor market data, which turned out to be quite strong.
The statistics published Friday showed that the Unemployment Rate remained unchanged in August at 3.9% although it was expected to decrease up to 3.8%. Non-Farm Payrolls for the same month row 201K after climbing 147K the month before. Analysts had called for a reading of 191K. Investors were impressed by the Average Hourly Earnings data, which rose 0.4% m/m after expanding by 0.3% m/m in July and against the expected reading of 0.2% m/m.
Strong earnings growth is what provided so much support for USD: the actual reading was the highest in 9 years.
Right now, investors are closely following what might happen between the US and China in their ongoing “trade wars”. At the end of last week, US President Donald Trump warned that the White House was ready to expand import duties on almost all goods made in China. It means that in money terms these duties may be twice as much as were announced earlier: about 267B USD to add to 200B USD introduced before. For investors, it’s a great risk factor, so they may turn to “safe haven” assets.
The H1 chart of EURUSD shows the descending tendency, which has corrected the previous uptrend by 38.2%. The next downside targets may be the retracements of 50.0% and 61.8% at 1.1517 and 1.1466 respectively. Right now, the pair is forming a slight short-term correction upwards to reach the resistance level at 1.1631. However, if the price breaks this resistance line, the instrument may start a new rising impulse towards the short-term high at 1.1733.
Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.