Non-Farm Payrolls out today, EUR/USD over 1.11

01 Nov 2019

As traders prepare for an all-important U.S. jobs report, the EUR/USD pair trades over the 1.1150.  Wages are thought to have increased, whereas job gains are expected to slow down. However, the pair continues to trade over the 50, 100, and 200 Simple Moving Averages. The currencies find resistance awaiting at last month’s peak handle at 1.1180. Moreover, they find support at 1.1130.

The Federal Reserve expanded its balance sheet, which introduced the possibility for the U.S. dollar index to be pushed further down to 85. The growth occurs after more bond assets purchases. In order to add more cash in the market, the Federal Reserve sought more bonds and Treasurys, which saw bond prices rise as a result. Fed Chairman, Jerome Powell ruled out the option to add rate hikes.

Non-farm Payrolls are to be released today. 89,000 jobs are estimated to be added in the economic calendar for October, following 136,000 gains in September. 

On the other hand, the Cable holds over 1.2950. Investors will be interested in knowing the outcomes of the UK Manufacturing PMI and the U.S. Non-farm Payrolls. Polls about the British elections on December 12th are also being looked at. The GBP/USD gained on Thursday reaching to an intraday high level of 1.2976. Polls were favourable for Boris Johnson and his Conservative Party, which continued to boost the GBP’s gains.