All eyes are on the US October Employment data. Don’t expect a major move due to Tuesday’s Presidential Election.
|8:30||USD||Average Hourly Earnings (MoM) (Oct)||0.3%||0.2%|
|08:30||USD||Nonfarm Payrolls (Oct)||175K||156K|
|08:30||USD||Participation Rate (Oct)||62.9%|
|08:30||USD||Private Nonfarm Payrolls (Oct)||166K||167K|
|08:30||USD||Trade Balance (Sep)||-37.80B||-40.70B|
|08:30||USD||Unemployment Rate (Oct)||4.9%||5.0%|
USD Reaction Will Be Temporary
EURUSD is holding steady into the announcements and will not punch through 1.11 before EST 8:30. If the data spooks the market expect a 100 to 150 bip move in either direction but we are not likely to see the move continue into early next week.
Trade Opportunity: Look to fade a move around 1.1220 for a retracement back to 1.10. There is no reason to risk a significant portion of your portfolio due to the weekend risk in the Presidential election.
There will be a more opportunity after the election is over and the chance of a trend to develop in EURUSD but if you need to trade then look to fade a major move for a small profit.