Coming Up Today(all times GMT)

  • GBP Manufacturing Production (8:30)
  • GBP PPI (8:30)
  • CAD Employment Change (11:00)
  • USD Non Farm Payrolls (12:30)
  • CAD Ivey PMI (14:00)

Its that time of the month again; Non Farm Payrolls are due out today. The overriding consensus is that a better than expected number will lead to the dollar strengthening across the board. It would take off the heat from the Fed and Obama administration to add further stimulus for the US economy. However, the real questions arise if another poor number is recorded. The Fed has stated recently that it doesn't want to initiate additional quantitative easing, but they may be forced to as jobs are currently the main issue in the US. Whatever happens, trading direction is expected to follow through into next week.

EURUSD

With NFP out today, volatility in the EURUSD has decreased as we head into the event. Forex traders will be watching the pair's week high of 1.3260, as it could breakout further if it spikes above this level on today's news. Additionally, traders should watch the 1.3120 support. The pair has bounced a few times off this level, if the dollar rallies today, but this level is still held, it should indicate strong buying support in the Forex market for the Euro.

Support/Resistance 1.3120/1.3260

GBPUSD

With the NFP out later in the day, it will be interesting to see what type of movement occurs after today's UK Manufacturing Production figures. This is usually a high impact event. Additionally, traders will be watching the 1.5970 resistance. The GBPUSD has failed to trade above this level on numerous occasions, therefore, a move higher could produce a breakout above the pivotal 1.6000 figure.

Support/Resistance 1.1.5820/1.5970