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2 Aug 2013
EUR/USD calm at 1.3200, but +200 Non Farm Payrolls could launch the Dollar
FXstreet.com (San Francisco) - After testing the 1.3200 area several times in both, the Thursday and Friday sessions, the Euro is moving sideways against the Greenback in between 1.3200 and 1.3220 just ahead the US Non Farm Payrolls and unemployment report. Expectations are in line of 184 new jobs and an unemployment rate at 7.5%.
The US jobs market seems to have stabilized in the past few months with an average jobs growth of 160K. According to the FXstreet.com Chief Analyst Valeria Bednarik, "any reading in line with expectations or above that level should be considered good."
However, to fuel a breaking movement in the Dollar the key is the unemployment rate as Bednarik says: "a reading above 200K will be indeed good for the greenback, while unemployment rate holds the key, as the rate has been above 7.5% since September 2009." The notion of improvement would fuel investors' confidence on the US recovery and belief that the QE is sooner to be reduced.
"A surprise fall below that level, should convince investors the FED is one step closer to begin QE tapering, and therefore trigger strong dollar gains," concluded Bednarik.
The US jobs market seems to have stabilized in the past few months with an average jobs growth of 160K. According to the FXstreet.com Chief Analyst Valeria Bednarik, "any reading in line with expectations or above that level should be considered good."
However, to fuel a breaking movement in the Dollar the key is the unemployment rate as Bednarik says: "a reading above 200K will be indeed good for the greenback, while unemployment rate holds the key, as the rate has been above 7.5% since September 2009." The notion of improvement would fuel investors' confidence on the US recovery and belief that the QE is sooner to be reduced.
"A surprise fall below that level, should convince investors the FED is one step closer to begin QE tapering, and therefore trigger strong dollar gains," concluded Bednarik.