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Forex trading US Nonfarm Payrolls: Can we trust the data? Brent Crude Oil at $100 again [Video]
Confirmed
In Short: Crude oil prices have surged to $100 per barrel amid increased tensions in Iran, while the U.S. Non-Farm Payrolls report showed robust job growth, bolstering the U.S. dollar.
Crude oil prices have surged to $100 per barrel, driven by increased military activity around the Strait of Hormuz and a recent attack on Saudi Aramco’s Jazan facilities, according to reports from Tradingpedia.
The U.S. Non-Farm Payrolls report for the month showed a substantial increase of 162,000 new jobs, a significant improvement over the 56,000 consensus, according to the Bureau of Labor Statistics.
Forex traders are closely monitoring the U.S. Producer Price Index and Consumer Price Index inflation data due later this week, which could further shape rate expectations and influence the U.S. dollar's strength.
The U.S. dollar has been recovering from six-month lows, with the USD/JPY pair retesting 154.00 in European trading on Tuesday, according to FXStreet.
West Texas Intermediate (WTI) crude oil is trading near three-month highs around $90.50 per barrel, supported by escalating conflict in the Middle East, while Brent Crude is looking at $100, according to FXStreet.
The USD/CAD pair continues to retreat, trading around 1.3800 during Asian hours on Tuesday, as market participants focus on upcoming inflation data and the strength of the U.S. labor market.
What's confirmed
What's still developing
- We need to look at crude oil, of course, with the increased aggression in Iran as Brent Crude is looking at $100.
- In today’s Market Outlook, let’s take a look at Forex trading on the Dow Jones Industrial Average, Brent Crude Oil, USD/JPY, USD/CHF and GBP/USD.
- Here, as well, on the 15-minute chart, we saw a whipsaw of about 50 pips and, again, our technicals picked the top of the movement.
- Nonfarm Payrolls (NFP) expanded by 162,000 positions, while the Unemployment Rate remained unchanged.
- It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data.
- The last thing to move this pair was Friday's US Nonfarm Payrolls (NFP), which printed 162K against a 56K consensus.
- A strong American labour market raises the odds the Federal Reserve (Fed) tightens again, a tighter Fed means a stronger Dollar, and a stronger Dollar means a lower GBP/USD.
- Sterling spent Friday being punished for somebody else's good news, and Friday next runs the same experiment on the price data.