The US Labour Market Is Slowing Down. How Could This Impact Major Currency Pair Pricing?

FXOpen

A weak employment report in the US contributed to a sharp pullback in major currency pairs, but it hasn't led to a full change in major trends yet. For instance, nonfarm payroll figures showed that:

  • The number of new jobs came in at 173K, compared to the forecast of 238K.
  • Average monthly wages decreased by 0.2% against an expected 0.3% increase.
  • Unemployment rose to 3.9% from 3.8%.

Following the slowdown in job growth, investors will eagerly await inflation data. If the figures meet or exceed expert forecasts, expectations for a rate cut by the US regulator could increase.

GBP/USD

According to technical analysis of the GBP/USD pair using the "chaos" system, we are seeing a corrective pullback after the formation of a reversal bar on April 22. Attention should be paid to price behaviour around 1.2520-1.2500. If the price rebounds from this range, it could strengthen towards 1.2640-1.2600. A drop below support at the entwined alligator lines may lead to a retest of the recent low around 1.2300.

Key events of the week include:

  • Today at 11:30 (GMT +3:00), publication of data on business activity index in the UK construction sector for April.
  • Thursday at 14:00 (GMT +3:00), Bank of England meeting and decision on the GBP base interest rate.

EUR/USD

After testing a significant resistance at 1.0800, the price corrected towards support at the alligator lines on the daily timeframe. Currently, the EUR/USD pair is above 1.0720-1.0700, and the probability of continued growth is quite high. However, if euro sellers manage to push below 1.0700, a resumption of the downtrend towards 1.0650-1.0600 may occur.

Today at 13:00 (GMT +3:00), we await the Eurogroup meeting. At 17:00 (GMT +3:00), a speech by the President of the German Federal Bank, Joachim Nagel, is scheduled.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD Price Forms Bullish Reversal Amid Key News GBP/USD Rate Surges to Two-Month High After Inflation News Market Analysis: GBP/USD Climbs Steadily While EUR/GBP Struggles Commodity Currencies Retreat from Local Highs Market Analysis: AUD/USD and NZD/USD Set Sights on Additional Upside

Latest articles

Forex Analysis

EUR/USD Price Forms Bullish Reversal Amid Key News

Last night, the FOMC meeting minutes were released. According to USNews, there were no major surprises. However, the confirmation of persistent inflation – along with hints that some officials discussed potential future rate hikes – displayed a "hawkish" stance. The dollar index

Shares

After Earnings Report, NVDA Stock Price Exceeds $1,000

For the first time in history, Nvidia's stock price has reached a four-digit number, and its market capitalisation has surpassed $2.5 trillion, ranking third globally after Microsoft and Apple. This surge is due to a strong earnings report, driven

What Is the 80-20 Rule (Pareto Principle) in Trading?
Trader’s Tools

What Is the 80-20 Rule (Pareto Principle) in Trading?

In trading, rules that could maximise efficiency are highly sought after. One such principle is the 80-20 rule, also known as the Pareto principle. This concept asserts that 80% of outcomes often stem from 20% of causes. In software development,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.