Market is patiently anticipating Jobs report from the US economy later today. The labour market in the United States has shown a strong growth over past quarter and unemployment is fallen almost to full-employment. Economist and analyst are expecting US economy to have added 203,000 more jobs. This is above the previous month which prints 173,000 jobs while unemployment figures are expected to remain at 5.1%, average hourly earnings could drop to 0.2% from previous month at 0.3%, average weekly hours is also expected to remain unchanged, private nonfarm might also see some improvement from 140,000 to 195,000.
According to the FED chairman, FOMC committee wants a consistent and strong labour market improvement before further actions could be taken on rate hike. If NFP figures come out strong today, market might start to anticipate a possible rate hike before the end of the year. USD might get stronger and trader might increase their USD position holding which will eventually push up the price of USD because of increased demand.
Technically, EURUSD might see some more downside to as low as 1.1000 which is the next support from the current price of 1.1173, GBPUSD price is currently cheap, it could fall further if USD gets stronger on the back of NFP data later today. Commodity prices such as gold might fall as low as $1000, this will also drag along commodity currencies such as AUDUSD which could also go through support level of 0.69105. if NFP figures come out weak, we might see a rally against USD across-board a rally on commodity like gold will give us another opportunity to sell again because it is a bear market.