August 3, 2021, | AtoZ Markets–EUR/USD is currently trading very close to its weekly opening price around the 1.1867 level. Prices are flat as investors await U.S. employment data.
Investors in the currency market have taken a pause, while the dollar continues to have bigger fans than other currencies globally.
On a weekly level, the price of the EUR/USD does not present large movements at this time and is located very close to the averages of 60 EMA (1.1858), 100 EMA (1.1708), and the 200 EMA (1.1618 ).
Here are the weekly pivot points for the major currencies:
US ADP Employment Figures Are Due Tomorrow
The ADP® National Employment Report™ is published monthly by the ADP Research Institute® in close collaboration with Moody’s Analytics. The ADP® National Employment Report™ provides a monthly image of U.S. nonfarm private sector employment based on actual transactional payroll data.
While this report is not considered official like the NFP (Non-Farm Payrolls), it can begin to show us how the U.S. employment numbers are doing.
June figures stand at 692,000 in U.S. nonfarm private sector employment. Meanwhile, the investors wait in July report a figure of 695,000 new jobs appears.
If the published figure does not match market expectations, the dollar will lose some of its strength against the major currencies. It is very important to always see how far the published figure is from that expected by investors. This helps us to see if U.S. employment and consequently the recovery of the economy will be affected.
What Is the NFP Report and Why Is It Important?
The monthly employment report in the United States is considered one of the most important economic indicators for traders.
It is published on the first Friday of each month and corresponds to the figures for the previous month. The change in the number of employees is closely related to the general performance of the American economy and is the official figure followed by the Fed
The Non-Farm Payroll report always tends to surprise the markets, and therefore special volatility is handled during its publication. If the published figures exceed the consensus of the analysts, an upward movement is generated for the USD.
Total nonfarm payroll employment rose by 850,000 in June and the unemployment rate was little changed at 5.9%, the U.S. Bureau of Labor Statistics reported. Notable job gains occurred in leisure and hospitality, public and private education, professional and business services, retail trade, and other services.
Traders need to keep an eye on the employment figures that will be published this week, as they will affect the behavior of the dollar in the following days.
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