The markets will be looking to the monthly payrolls data from the United States today. The U.S. department of labor will be releasing the monthly nonfarm payrolls report for the month of March at 12:30 GMT today.
Economists forecast that the U.S. economy added 188k jobs during the month. However, given that the private payrolls firm ADP signaled a higher than expected increase in payrolls in the private sector, the scope for a better than expected nonfarm payrolls print is high. However, the month of March is expected to be a seasonally weak month for payrolls. This could come with some significant downside risks.
The U.S. unemployment rate is expected to fall by one percentage point to 4.0% in the month of March. This would mark a new low in the labor market. However, the data would not come as a surprise as Fed members had previously signaled that the U.S. unemployment rate could slip below 4.0% in the medium term.
Wage growth, which remains a key factor for investors to gauge the potential increase in inflation, is forecast to rise 0.3% on the month. If wage growth matches expectations this could strongly post a significant risk for the markets as investors are likely to once again start pricing in an additional rate hike this year.
Based on the above, today's binary options trading signal is USDJPY. The currency pair posted strong gains on the day as the U.S. dollar was seen posting strong gains led by improved market sentiment. USDJPY is seen trading close to the main resistance level at 107.78.
Therefore, it is ideal to purchase daily PUT options at 107.78 as we expect the USDJPY to briefly rise to this level before easing back lower. A reversal at 107.78 will mark a modest correction in prices as we expect the currency pair to close lower on the day.
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Charts from FXCM.com
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