Investors should watch for price movements at the start of the week leading up to the U.S. jobs report

Investors should watch for price movements at the start of the week leading up to the U.S. jobs report

29.05.2023

Last weekend, the U.S. dollar rose against the euro after the U.S. April Core PCE Deflator, released on the 26th, rose from 4.6% to 4.7% year-over-year.The EUR/USD pair fell from 1.0757 to 1.0701, finding support near the 200-day EMA on the daily chart. Since the EUR/USD has been in a downtrend on the 4-hour chart—with the 20-day MA acting as resistance—since the 4th of this month, we should remain cautious of further declines during European trading hours.

Despite the fact that the UK’s April retail sales, released last weekend, showed a year-on-year decline of 3.0% (down from 3.1%), the pound traded in a tight range against the US dollar. The GBP/USD pair fluctuated wildly between 1.2311 and 1.2392, with price action straddling the 20-period moving average on the hourly chart.From a technical perspective, a downtrend along the 20-period moving average on the 4-hour chart has been in place since May 10, so we will be watching closely to see if the pair extends its decline toward the next support level around 1.2279.

Today, Swedish household loans are scheduled for 3:00 PM Asia time, followed by the Turkish Economic Confidence Index at 4:00 PM Europe time, Hong Kong’s trade balance at 5:30 PM, Brazilian employment figures at 2:00 AM U.S. time, and New Zealand housing permits at 7:45 AM the following day. No economic indicators are scheduled for release during U.S. trading hours.With the U.S. jobs report coming up this weekend, we will be closely monitoring price movements at the start of the week to see if the U.S. dollar reacts ahead of the report.