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The USD is lower ahead of the US jobs report. What levels will be eyed for trading clues? | Forexlive

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The USD is lower vs the major currency pairs – the EURUSD, USDJPY and GBPUSD – ahead of the US jobs report.

The expectation is for the jobs shows:

  • Non-farm payroll 130K vs 228K last month
  • Unemployment rate 4.2% vs 4.2% last month
  • Average hourly earnings 0.3% vs 0.3% last month
  • Average workweek 34.2 hours vs 34.2 hours last month

Numbers released so far this month:

  • ADP report +62K versus +147K prior (lowest in almost 2 years)
  • ISM services employment not yet released
  • ISM manufacturing employment 46.5 vs 44.7 prior
  • Challenger job cuts 105.44k vs 275.2k prior
  • Philly employment +0.2 vs +19.7 prior
  • Empire employment -2.6 vs -4.1 prior
  • Initial jobless claims survey week 216K vs 225K prior

Seasonals from BMO:

  • In April, the headline beat 57% of the time and missed 43% of the time
  • On unemployment, the rate has been lower than expected 42% of the time, higher 39% of the time and in line 19% of the time

ADP looms large ahead of the report and the recent JOLTS number was soft but the initial jobless claims numbers lately haven’t shown any sign of layoffs, including today’s number which was skewed by New York teachers.

IN the video above, I take a look at the technical drivers for each of the major currency pairs ahead of the report.

Be aware. Be prepared.

Looking at other markets ahead of the report:

  • Crude oil is down $0.70 or -1.16% at $58.55
  • Gold is trading up $22 or 0.70% at $3261.40
  • Bitcoin is trading at $320 at $96,855

in the premarket for US stocks, the US futures are implying a marginally higher opening. The S&P index is up for eight consecutive days:

  • Dow industrial average +168 points after rising 83.6 points or 0.21% yesterday
  • S&P index is up 19.36 points after rising 35.08 points or 0.63% yesterday.
  • NASDAQ index of 54 points after rising 264.40 points or 1.52% yesterday.

In the US that market, yields are mixed with the shorter and marginally higher in the longer an marginally lower:

  • 2 year yield 3.716%, +1.6 basis points
  • 5- year yield 3.819%, +0.6 basis points
  • 10 year yield 4.225%, -0.6 basis points
  • 30 year yield 4.17 1%, -1.5 basis points
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