NFP Disappointed

April 6, 2015 – Forex News

Hot asset for today: USD

EUR/USD

On Friday, the EUR/USD traded with thin liquidity as most global markets were closed for Good Friday. However, the U.S. non-farm payrolls data was still released and the reading caused significant movement. Within a few minutes, the pair added 100 pips and settled above 1.0965 before the week ended. The actual number of newly employed people dropped to a 1 year low and showed a disappointing 126K. Despite the very low figure, Average Hourly Earnings slightly increased.

Today, volatility should remain low during the European session as markets remain closed. However, American markets will open as usual and volatility should pick up with economic releases. At 12.30PM(GMT) FOMC member, William Dudley, will speak about the economic outlook. At 2.00PM (GMT) the U.S. ISM Non-Manufacturing PMI will be published and is expected to be slightly lower than the last reading.  The trend is sideways. Support is found at 1.0860 and resistance at 1.1030.

GBP/USD

On Friday, the GBP/USD reached a high of 1.4940 after the U.S. Non-farm payrolls showed just half of the expected figure. Weak U.S. data decreased the likelihood that the Fed will increase interest rates in June.

Today, the U.K. market will remain closed. We should expect volatility to pick up at the open of the American session as economic data will come out. Bullish sentiment could continue as William Dudley, who is speaking at 12.30PM (GMT), is considered to be quite dovish. The trend is sideways. Support is found at 1.4750 and resistance at 1.4870.