FXEMPIRE
All

US Dollar in Focus as Traders Await Non-Farm Payroll Numbers on Friday

After weaker than expected ISM manufacturing PMI data in the US, investors will shift their focus on Non-Farm payroll report on Friday.
Bilal Jafar

The Dollar Index (DXY) took a major hit on Monday after weaker than expected ISM manufacturing PMI data. The Greenback fell against major currencies on the first trading day of the week. The DXY fell below the key level of 98.00 in the morning US session on December 2. The Wall Street is expecting a strong report for November with Non-Farm payroll reading higher than the 128K in October. The unemployment rate is expected to stay at 3.6% with a slight increase in average hourly earnings.

Mixed messages and conflicting signals on the US-China trade front have placed investors on an emotional rollercoaster ride. Under such circumstances, market players await US Non-Farm payroll numbers for future direction. A stronger than expected NFP report and an increase in average hourly income will be helpful to repair some damage done by the weaker than expected PMI data.

US Dollar remained under pressure against CHF, GBP, and JPY. The Greenback erased all of its gains from the previous week after the disappointing PMI data. Upcoming NFP numbers and clarity on the fate of a US-China phase one trade deal will decide the future direction of the US Dollar. As of writing, the USDCHF is hovering around 0.98690, USDJPY is currently trading around 108.540. The GBPUSD is currently trading around 1.29827 as bulls are eyeing a break above 1.30000.

USDJPY

On the technical side, USDJPY on the hourly timeframe has been following a downtrend since December 2. The price dipped below the key level of 109.000 and registered the lowest level of the period under study at 108.533 on 03 December. As of writing, the price is hovering around 108.540 with negative Moving Average Convergence Divergence (MACD) and Momentum below the 100 level. The price is currently trading below the 50-period simple moving average with Relative Strength Index (RSI) way below 50 level which supports the recent bearish price move. However, traders must stay cautious as the RSI level already dipped below the oversold area. Resistance level lies at 109.725 while the support level lies at 108.533. Although bears are trying to push the price below the key mark of 108.000, a strong Non-Farm Payrolls report and a close above the psychological level of 109.000 could strengthen the argument for further bullish movements.

For more information, please visit: FXTM


Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US