EUR/USD awaits US jobs data

The euro is broadly unchanged versus the US dollar as dealers wait for the unemployment report from the US.

The EUR/USD pair is trading at $1.3668, down slightly on the day as traders dally ahead of the non-farms payrolls and US unemployment reports at 1.30pm (London time). The data is considered the most important of the month.

According to the Bloomberg survey we are expecting an increase of 185,000 new jobs to have been created and for the unemployment rate to drop to 7.2%. The Federal Reserve has pegged its monetary policy to the unemployment rate so if the rate falls more than expected, we could see a decline in the euro.

It has been a quiet day in terms of economic data from the eurozone. The Fed’s next meeting is in less than two weeks, and some traders feel the central bank could reduce its bond-buying scheme before the new year. The growth figure from the US yesterday exceeded expectations, which is a sign the stimulus package is working.

If the unemployment report misses expectations we could see the euro move higher; since  yesterday’s article we have cleared the high of $1.3620, so could be on a path to $1.38.

Spot FX EUR/USD chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.