Nonfarm Payrolls Preview

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There are expectations for an economic comeback, which might dominate the previous moderate macroeconomic numbers. Positive Nonfarm Payrolls data possibly push the US dollar higher temporarily.

This afternoon US Nonfarm Payroll is likely to demonstrate that the US economy might add close to 100K new jobs in this month. Furthermore, the unemployment rate seems to be expected steady at 6.7%. Additionally, average hourly wages are projected to demonstrate growth by 0.2% MoM, while the annual numbers seem to be unchanged at 4.4%. So, we might witness a short-lived rally in the US dollar index against its major peers.

US dollar Currency Index

Based on the technical analysis, the 90.7 level seems to be the immediate support level, where the bear might take a breath. Sustaining below the 90.7 level, possibly add further weakness, which could lead to a 90.14 level in the near-term period. However, the top 91.7 level proved to be the key resistance level before it develops the bull flag.

By Vinay Kumar
May 7, 2021

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