EURUSD 02-02-2018 Intra-day analysis.

Can January payrolls strengthen the USD?

Posted on
EURUSD 02-02-2018

Daily Forex Market Preview, 02/02/2018

The U.S. dollar continued to remain weak a day after the FOMC meeting saw interest rates being unchanged. Despite a slightly hawkish Fed statement, the dollar remained weaker especially against the euro currency.

Data from the Eurozone showed that manufacturing sector started the year on a firm footing. Eurozone’s manufacturing PMI was seen rising to 59.6 as expected. In the UK, the manufacturing PMI was slightly weaker with the index at 55.3 which missed estimates of 56.5 and down from December’s 56.2.

In the U.S. the ISM’s manufacturing PMI showed another strong month with the index beating expectations and rising to 59.1 This was however weaker than December’s gain of 59.7.

Looking ahead, the payrolls report for the month of January will be released today which will be major event risk for the currency markets. The U.S. unemployment rate is expected to remain steady at 4.1% while the number of jobs being added during the month is expected to rise 181k, up from December’s 141k. Wage growth is forecast to rise 0.2%, slightly slower than December’s increase of 0.3%.

 

EURUSD intra-day analysis

EURUSD (1.2493): The EURUSD continued to surge higher which followed the technical rebound off the bullish flag breakout level at 1.2398 level. The gains are likely to be short lived as early trading today is showing signs of a reversal near the previous top at 1.2498 – 1.2500 level. A follow through to the downside is required to validate this bias. Support at the 1.2398 level will of course once again be crucial. A break down below this level is required in order to validate the downside bias. Lower targets come in at 1.2281 followed by 1.2090 levels.

 

 

(Visited 15 times, 1 visits today)

John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.

Follow Me:
Twitter

Disclaimer:

This material is intended for marketing/information purposes only and does not contain, and should not be construed as containing; an attempt of solicitation for any transactions in financial instruments and does not constitute investment advice or research. Past performance is not a guarantee of or prediction of future performance. The Trade Ideas are provided independently by an external third party company, PIA First Limited, which is authorised and regulated by the Financial Conduct Authority FRN 787261 to provide regulated products and services including Investment Advice. Registered in England & Wales, company number 07428345. Registered Office: Kemp House, 152 City Road, London EC1V 2NX. VAT number 153 646014. Copyright © 2018.

ORBEX does not take into account your personal investment objectives or financial situation, Readers should consider the possibility that they may incur losses. ORBEX makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of ORBEX, a third party or otherwise. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of ORBEX. This communication must not be reproduced or further distributed without the prior permission of ORBEX.

This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change.

START TRADING

or practice on DEMO ACCOUNT

Trading CFDs Involves high risk of loss

John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.

© Orbex