Euro steady ahead of US jobs report

The euro is broadly unchanged against the US dollar as traders await the US jobs announcement.

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 here

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.