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The EUR/USD pair is trading at $1.3858, slightly lower on the day, as dealers digest the eurozone unemployment figures. Their focus now turns to the release of the US non-farm payroll data and the unemployment rate at 1.30pm (London time).
This morning the eurozone revealed unemployment had remained unchanged at 11.8%; analysts were expecting it to increase to 11.9%, and there was some profit-taking on the back of the announcement.
The non-farm payrolls report is the most important figure of the month. It is not unusual for trading volumes and volatility to be low in the run up to the announcement. The ADP employment data showed an increase in private sector jobs, but the number of people claiming unemployment benefit also rose this week.
The consensus is for an increase of 215,000 new jobs and for unemployment to drop from 6.7% to 6.6%. As Alastair McCaig stated, EUR/USD is rangebound between $1.37 and $1.39. If the reports miss expectations we could see the euro finally breakthrough the $1.39 level. Alternatively, we could move towards $1.38 if it beats expectations.
Brenda Kelly is hosting a non-farm payroll webinar today at 12.45pm, register on our website.