Trading news

US Unemployment Falls To 50-Year Low

The monthly nonfarm payrolls report surprised with the unemployment rate falling to 3.5%. This marked the lowest unemployment levels since 1959.

Payrolls grew by 136,000 missing the estimates of 145,000.

The payroll figures for August were revised higher to 168,000 from 130,000 and July’s figures were revised to 166,000 from 159,000.

The average hourly earnings, however, grew at an annualized pace of 2.9%. The data brought some life back to the US dollar which had fallen after weak manufacturing and services PMI numbers earlier last week.

Euro Closes the Week with Modest Gains

The euro managed to close in the green on a weekly basis. The gains were primarily driven by a weaker USD.

Friday’s payrolls saw the dollar paring losses but still closed in the red. This saw the euro posting a four-day winning streak.

A lack of any new fundamentals from the eurozone saw the gains to be rather muted.

Will EURUSD Maintain the Upside Bias?

The currency pair settled comfortably above the support turned resistance area of 1.0944 – 1.0925. Price action is yet to test this level to reconfirm support. If support is formed at this level, we anticipate further gains in store. The upside could prevail which will see the EURUSD targeting the 1.1030 resistance area.

Brexit Uncertainty Builds, Calls for Delay Rise

UK PM Boris Johnson’s new Brexit deal saw lukewarm response from policymakers in Brussels. With a lack of any clear enthusiasm, the focus shifts to a possible delay of the Brexit deadline once again.

News outlets report that the Scottish court ruled that PM Johnson must seek an extension if no deal is reached by October 19th. However, the British Prime Minister has maintained his stance that the UK will leave EU regardless of a deal by October 31st.

GBPUSD Stays Muted to Brexit Drama

The pound sterling logged some modest gains on Friday. Price action remains trading within the resistance area of the 1.2370–1.2291 region. On a weekly basis, the GBPUSD closed with modest gains.

However, the weekly bearish bias remains. Unless GBPUSD closes above 1.2370, we expect the downside momentum to pick up the pace once again.

Gold Prices Give Back Gains After Payrolls Report

The precious metal closed flat on Friday giving up the gains from earlier in the day. The precious metal was seen once again closing the week on a positive note.

The gains were primarily led by weak ISM manufacturing and services reports. However, with the unemployment rate falling to new lows, investor risk appetite rose.

XAUUSD to Maintain Sideways Range

Gold prices are likely to trade in the range between 1508 and 1485. Failure to break past the upper level leaves the precious metal exposed to further losses. Watch the lower level of 1485, which could give way.

A close below this level will see the correction resuming. The downside target remains at the 1431–1428 level of support.

Orbex Review

Monday, 07 Oct, 2019 / 12:25

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Source : https://www.orbex.com/blog/en/2019/10/us-unemployment-falls-to-50-year-low

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