Nonfarm Payrolls Preview Analysis
05th Mar 2021
The market seems to be too optimistic on Nonfarm Payrolls numbers coming later today. While the NFP data is extremely hard to guess, with caution market is projecting initial forecasts, resulting in 182,000 jobs in addition to the economic calendar data.
The dollar has room to rise in case of a figure that only meets estimates with 182,000. A rise of over 182K figure might be a big boost for the US dollar. Markets assuming rapid hiring over economic recovery and will possibly increase near the re-opening of the economy.
However, any result lower than 182,000 jobs probably push the US dollar bit lower. But if the final reading is lower than 100k: then the US dollar might lose all the lead recently gain. It would justify the Fed’s vigilant methodology and suggest lower rates and further bond-buying for a longer-term period.
Based on the technical analysis, sustaining above the 91.140 resistance zone market big jump in the US dollar index. Today, the market is eyeing the positive Nonfarm Payrolls data, which might set for further higher levels in the near-term period. So, at higher levels near 92.5 could be the resistance zone.