Nonfarm payroll in focus while dollar softer

U.S. dollar is strongest against euro in 4 months on Wednesday because the U.S. bond yield and economic data. After Fed kept interest rate unchanged at 1.75% and signaled about the rising inflation closing to 2% so market predicts that U.S. inflation may rise to 2% in 2018 and Fed may rise interest rate in June. While investor focus on U.S. labor market and trade negotiation between the United State and China. In my opinion, even Fed is still positive on U.S. economy but Fed changed or removed some words in the report: strong labor market and strong growth economy, these maybe signals of beginning of slowdown economy. Therefore, trade meeting with China may become the key of growth or drop of U.S. economy and world economy.
The local trend of EUR/USD is bearish and it may fall lower to 1.900 points, If U.S. nonfarm payroll in April at 19.30 p.m. release better than forecast. U.S. unemployment rate predicts lower at 4.0% as well as nonfarm payroll predicts 194,000 positions but last month nonfarm actual released worse than forecast. I think if nonfarm reaches the forecast, dollar may hold steady but if nonfarm less than forecast, euro may stand above 1.200 dollar. Canadian dollar hold steady because of the strong economic data and USD/CAD may fall lower than 1.2800 points, if Ivey PMI in April at 21.00 p.m. reaches 60.2.
BMW, Ford, General Motors and Renault collaborate with Mobility Open Blockchain Initiative (MOBI) to develop Blockchain project for automotive industry. While Bitcoin and altcoin hold steady moving sideways, Bitcoin still hold above a support line at 8,600 USD. Hence, Bitcoin may wait strong buy volume to break 10,000USD.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

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