EURUSD is moving in an Ascending channel and the market has reached the higher low area of the channel
US Private ADP Processor reported Private businesses created 145000 jobs instead of 200000 expected. Job openings in the US is less and lowest in February month since past 2 years and Service sectors are slowed and Paid for service workers came to lowest in three years due to FED raised interest rates much more.Slower growth, slower demand for services, slower demand for workers and slower inflation So US Non-farm payrolls is expected to lower numbers due to disappointment numbers from Services sector, private employment, ISM manufacturing activity data printed this week Slower economic data makes fears of recession in US Economy sent US Dollar weakness and demand for Safe haven is loosened.
FED’s View on Rate Hike
Over the past three weeks, DXY has fallen as concerns about a bank crisis have subsided and negative US statistics have emerged. The US Dollar Index might also be suffering as a result of Federal Reserve officials’ inability to persuade the markets of their readiness to be aggressive. The Organization of the Petroleum Exporting Countries and its allies, also known as OPEC+, decreased their crude output over the weekend, reigniting inflationary fears and heightening concerns about interest rates, which in turn increased demand for the US Dollar as a safe haven.
XAUUSD is moving in an Ascending channel and the market has reached the higher high area of the channel.
FED Jerome Powell, the chairman of the Federal Reserve, pushed for a further rate rise, and Susan Collins, the president of the Federal Reserve Bank of Boston, emphasised the need for higher rates in her most recent speeches to control inflation. Similar to this, John C. Williams, president of the Federal Reserve Bank of New York, forecasted that inflation would decline to about 3-1/4 percent this year and then rise over the subsequent two years to achieve our longer-term goal. In contrast, bank shares recover in reaction to strong performance in the banking sector, mixed US data, a firmer Wall Street close, and an increase in US Treasury bond yields.
USDJPY is moving in an Ascending channel and the market has rebounded from the higher low area of the channel.
The U.S. dollar remained weak on Thursday, hovering near a two-month low, as investors assessed how the release of the highly anticipated U.S. non-farm payrolls report would impact Federal Reserve policy. With many markets closed on Friday, the day of the report’s release, traders are cautious about taking risks, and are instead focused on safe-haven assets. This comes after a series of disappointing economic data releases, including weak manufacturing and services sector results from the Institute for Supply Management and private employment figures on Wednesday.
These factors have reignited concerns about a potential recession, causing investors to consolidate their positions. As investors become increasingly risk-averse, U.S. shares fell on Wednesday while Treasuries increased, causing the benchmark 10-year yield to drop to its lowest level since September. When bond prices increase, bond yields fall. At the time of writing, the yield on a 10-year Treasury note was 3.2958%, while a two-year note, whose yield often rises in lockstep with expectations for interest rates, was at 3.7605%.
US Dollar Weakens against Major Currencies
In sporadic trading on Thursday, the U.S. dollar lost strength against several major currencies as investors consolidated their positions and considered the potential impact of the U.S. non-farm payrolls report on Federal Reserve policy. Due in part to falling Treasury yields, the U.S. dollar index reached a two-month low this week, down 0.1% at 101.81 in afternoon trading.
GBPUSD is moving in the Box pattern and the market has reached the resistance area of the pattern.
According to the head of FX strategy at National Australia Bank, the key to foreign exchange will be the interaction between U.S. economic data and opinions about Federal Reserve policy. The euro dropped 0.14% to $1.0891, while the pound dropped 0.2% to $1.2437. Analysts predict that the release of bleak economic data may lead to the Fed reconsidering its plans to raise interest rates. Traders anticipate that Federal Reserve Bank of St. Louis President James Bullard will clarify the situation when he speaks later on Thursday.
Loretta Mester, the president of the Cleveland Federal Reserve and a well-known hawk, said it was too early to judge whether the Fed would need to raise its benchmark rate at its upcoming policy meeting.
Markets Await Non-Farm Payrolls Report
The U.S. first claims data on Thursday made the case for a sluggish economy stronger, with initial claims for state unemployment benefits falling by 18,000 for the week ending April 1 to a seasonally adjusted 228,000. However, the data for the prior week has since been adjusted to reflect 48,000 more applications than the previous version showed.
AUDUSD has broken the Descending channel in upside and the market has reached the higher low area of the Ascending channel.
A proxy for hiring, the number of people receiving benefits after a first week of assistance increased by 6,000 to 1.823 million for the week ending March 25.The widely anticipated U.S. non-farm payrolls report will be released on Friday, when many markets around the world are closed. According to experts surveyed by Reuters, non-farm payrolls climbed by 311,000 in February and are projected to have increased by 239,000 in March.
The non-farm payrolls figure has been significantly more likely in recent years to provide pleasant surprises than unpleasant ones. However, analysts predict that the release of bleak economic data may lead to the Fed reconsidering its plans to raise interest rates.
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