Financial Market await today US labor market data while market seems sensitive toward those numbers after UK policy makers head yesterday for Rate cut on Pound while raised the celling of the quantitative Easing program.
What cause this sensitivity is that all major central banks around the globe are heading for more monetary easing and more stimulus while USA seems heading alone in to the other side of the equation to increase the borrowing cost after ending the QE program
It’s expected that NFP to be released today where market expecting lower rate than last June, while as should be noted the average of the NFP for the first half of this year is 172,000 and so any number above this average should be fine for Dollar
The second Number today is the Unemployment rate where US labor market managed to reach the Full Employment rate at (4.9%) as the Fed define several months ago, where market expected today more drop on unemployment which will keep the Fed policy makers eyes toward Inflation Rate which consider the most important factor that Fed are await to hike Interest Rate which will lead us to the third number reading today the (Average Hourly earnings) which have big impact on consumption which in turn affect Inflation Rate
In case (Average Hourly Earnings) reading came above expectation this may lead for Dollar demand
Dollar Index head for drop correction as we advised last week while seems Index have several support levels first at (94.60) and second at (94.00) where as long as market holding above one of those levels the uptrend will back toward (98.00) zone and above
Below (94.00) market may head for farther drop where zone (92.80) may become a Short-Run target