Will the U.S. jobs report clarify the direction of the U.S. dollar?
05.11.2021
- U.S. Employment Report
- Canada-Ivey Purchasing Managers' Index
Yesterday, two of the three major U.S. stock indices rose, resulting in a market environment characterized by higher stock prices, lower interest rates, and lower oil prices. Ethereum, which had been trading at record highs, fell by about 1.76% from the previous day to 513,000. The U.S. Dollar Index rose to 94.3. The yield on the 10-year U.S. Treasury note is hovering around 1.53%.
In the foreign exchange market, the EUR/USD pair, which had been trading in a range, fell from 1.161 to 1.152 and is now trending lower, with the price tracking the 20-period moving average on the hourly chart. If the recent low of 1.152 holds as support, we can expect a rebound around that level. However, if the price breaks below this level, there are no major resistance levels until 1.140, so we should keep in mind that 1.140 could become the next target.
Today, at 16:00 CET, German industrial production and UK Halifax house prices will be released, followed by FrenchIndustrial Production, and the French Manufacturing Production Index; during U.S. trading hours at 21:15, remarks by BOE Deputy Governor Ramsden and MPC member Pill; at 21:30, the Canadian Unemployment Rate and U.S. Employment Report; at 22:00, remarks by MPC member Tenreyro; and at 23:00, the Canadian Ivey PMI.The unemployment rate in today’s U.S. employment report is expected to be 4.7%. I want to closely monitor whether the actual figure exceeds this forecast.
Author: Keisuke Sakurai
