As expected by our recent forecasts, the single European currency is under strong pressure from the US dollar and, at the moment, is actively selling in the foreign exchange market. The reason for this is the expectation of strong US labor market statistics coming out today.
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Additional pessimism for the single currency was added by ADP statistics published recently that surpassed the boldest analysts' forecasts. According to agency statistics, 275,000 new jobs added to the US labor market in April. Recall that the ADP indicator is a very good guideline that precedes the official data of the US Department of Labor.
The American pro-presidential edition Breitbart did not hide its exultation about ADP impressive figures:
On the eve, EUR tried to change the situation, however unsuccessfully. At the moment, significant resistance in the EURUSD pair is located at the level of 1.1200. The pair itself trades with a decline at the level of 1, 1168 and, if the forecasts on the American labor market indicators prove to be correct, then it will continue its downward movement (although one should not exclude a corrective movement in the opposite direction).
In a pair with the British pound, the “American” is also leading - the GBPUSD pair is trading lower at 1, 3030. The pound may be supported by the April PMI data for services. Projections indicate a return to growth in the sector from previous figures of 48.90 to 50.50 in April.
In the political arena, the results of local elections may also affect the future behavior of the pound. If the conservatives are defeated, the chances of a vote of no confidence in the Theresa May government can increase significantly.
Trading recommendations for GBPUSD: Sell. Entry point - 1, 3041. Take Profit - 1, 3022. Stop Loss - 1, 3074.
Trading recommendations for Forex traders in other pairs:
USDCAD: Buy. Entry point - 1, 3462. Take Profit - 1, 3478. Stop Loss - 1, 3434.
AUDUSD: Buy. Entry point - 0, 6992. Take Profit - 0, 7005. Stop Loss - 0, 6969.
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