Good day forex traders.
How have you been doing? I hope you are doing well in your trading.
In the previous article we did the review of the EUR/USD in 2016. Time flies indeed and now here we are in 2017.
Looking at the weekly chart of the EUR/USD, we note on the current region of influence at 1.06. This is an area that needs to be taken down if more bullish uprising is to be seen.
At the lower end, we are expecting 1.04 to be a possible bearish support.
In the recent US Non-Farm Payroll, the figures have disappointed. BBC reports ” US businesses added 156,000 jobs in December in the last release of key economic data before Donald Trump is sworn in as US president.
The number of jobs created fell from an upwardly revised 204,000 in November and came in below market expectations of 175,000 new roles.
The jobless rate edged up last month to 4.7% from 4.6%.
Mr Trump, who takes office on 20 January, has pledged to create 25 million jobs over 10 years.
The US Bureau of Labor Statistics said that the annual rate of wage growth accelerated in December to 2.7%. This compares with a 2.5% increase in annual average hourly earnings recorded in November and is the quickest pace of growth since June 2009.
The bureau revised up the number of new jobs created in November from an initial count of 178,000 to 204,000. ”
While there is an increase of jobless rate, it is important to note of the increased annual rate of wage growth which many will argue as a better indicator of the economy.
In another development, the US Federal Reserve may have to quicken the pace of interest rate hikes. BBC reports ” Mr Trump has promised to cut tax both for individuals and for businesses, as well as invest in national infrastructure.
The US Federal Reserve indicated in the minutes from its last rate-setting meeting in December that it may have to raise interest rates at a quicker pace if Congress passes Mr Trump’s tax cuts.
The US Fed has lifted interest rates just twice in the past decade, with the most recent increase to 0.5%-0.75% last month. ”
Expectations of an increase in pace may strength the US dollar.