- SWFX market sentiment is 53% bullish
- Trader pending orders are 61% to sell
- Pair opened Friday's session at the 1.0659 level
- Aggregate daily technical indicators bet EUR/USD will fall
- Economic events to watch over the next 24 hours: US Average Hourly Earnings, US Non-Farm Employment Change, US Unemployment rate, FOMC Member Brainard Speaks
The number of Americans filing for first-time unemployment benefits rose last week to the highest level since the summer, but the trend remained still consistent with a healthy signs of the US job market. According to the report, initial jobless claims rose to 268,000, showing an increase of 17,000 from the previous week's unrevised level of 251,000. Meanwhile, economists had expected jobless claims to reach 253,000 level. The following increase was much bigger than expected, thus jobless claims reached their highest level since hitting 270,000 in the week ended June 25th. Claims have been below 300,000 since early 2015, showing the longest such streak since 1970. Employers' reluctance to part with workers is one sign of a tight labor market. In the meantime, US manufacturing was stronger than expected in November, since the strong greenback remains a headache for producers in the sector. According to the Institute of Supply Management and Markit Economics, the ISM PMI went up to 53.2 in November (52.5 expected.) Regional data received over the past month suggested improvement in the sector and had pointed to a strong national reading
Consumer prices climbed in the Euro zone last month, official figures revealed on Wednesday. According to the Eurostat, the CPI came in at annualized 0.6% in November, up from 0.5% rise in October, the largest gain since May 2014. On a yearly basis, the core CPI came in at 0.8% unchanged from the prior month and matching analysts' expectations. The slump in energy prices was fractionally higher at annual 1.1% compared with 0.9% previously. In the meantime, oil prices felt from the highest level in October, though stayed greater than the 7.3% decrease in November 2015. The yearly growth in food and beverages prices advanced to 0.7% from 0.4% the previous month. The so-called core CPI, which excludes food, energy, alcohol and tobacco, held steady at 0.3% on an annual basis in the same month, meanwhile the service sector CPI was unchanged with a slight step lower from 1.2% in November 2015. Although core inflation holds at 0.8%, price increases stays below the European Central Bank aim of 2% despite sustaining an accommodative monetary stimulus. After the release, the Euro rose 0.14% against the US Dollar to trade at 1.0640, while Germany's DAX traded up 0.13%, France's CAC 40 advanced 0.24% and London's FTSE 100 gained 0.16%.
Upcoming fundamentals: US Employment data continues
On Friday the financial markets will be affected by releases, which set the strength of the US Dollar. All of them will be released at 13:30 GMT, and the data will be combined in a package. The package will consist of the US Average Hourly Earnings, US Non-Farm Payrolls and the US Unemployment rate. Moreover, traders might want to listen to the speech of the FOMC Member Brainard at 13:45 GMT.
EUR/USD approaches 1.07 mark
Daily Chart: The common European currency surged against the Greenback on Friday morning, as it was on its way to the resistance put up by the January low level at 1.0709. Previously, during Thursday's trading session the rate found support in a cluster of simple moving averages and the weekly PP at 1.0589. After that the rate jumped just slightly above the weekly R1 at 1.0659, from where the Friday's session began. Moreover, during the move the established descending channel patter was broken. That means the rate has actually reversed and is poised to continue the surge.Daily chart
Hourly chart: The hourly chart for the EUR/USD pair shows that most of yesterday's trading was spent trying to find support in the various simple moving averages. However, as it was forecasted after some jumping around the rate surged and reached even above the weekly R1, which was considered strong enough to be able to stop the pair. Although, there is a problem for traders, which occurred yesterday. At 15:00 GMT the rate bounced below the weekly PP, which might have triggered stop losses for many traders.
Hourly chart
SWFX traders remain slightly bullish
SWFX traders remain slightly bullish on Friday, as 53% of open positions were long on Friday. Meanwhile, 61% of trader pending commands were set up to sell the Euro.
OANDA traders have decreased their bullish outlook, as 59.74% of open EUR/USD positions were long on Friday morning, compared to 65.85% long positions on Thursday. In addition, SAXO Bank clients have even become bearish, as 52.34% open positions are short, compared to 54.08% long positions during the previous trading session.