Daily Forex Market Preview, 09/03/2018
The euro currency was seen posting strong losses on the day as the currency pair fell following Draghi’s comments in the press conference. The central bank had tweaked its language by removing the easing bias, which briefly led to some gains. However, in the press conference, Draghi’s reference to global trade wars sent the euro lower.
In the U.S. President Trump signed a bill that imposes tariffs on steel and aluminum imports. Canada and Mexico were exempt from the tariffs which comes into effect in 15 days.
Looking ahead, the nonfarm payrolls data will be coming out today which will be the major event risk. Economists forecast that the U.S. unemployment could fall further to 4.0% while the average hourly earnings are expected to rise at a slower pace of 0.2%. The monthly nonfarm employment change is expected to show a headline print of 205k.
Canada will also be releasing its monthly payrolls report today with the unemployment rate expected to hold steady at 5.9%.
EURUSD 09-03-2018 Intra-day analysis
EURUSD (1.2310): The euro briefly tested intraday highs near 1.2443 before giving up most of the gains. The currency pair closed back below the support/resistance level of 1.2333 level. A stronger than expected payrolls report today could potentially push the common currency lower with the previous downside target of 1.2090 – 1.2070 coming back into focus. However, we expect to see some consolidation taking place near the current levels in the meanwhile.