NFP headlines the first full trading week of 2020

During the upcoming trading week market participants look to the release of the US Nonfarm payrolls job report and a host of high-impacting EU data release. Most economists are expecting that the United States economy added around 170,000 new jobs during the month of December. 

The eurozone economy is also in focus, with the release of EU and German PMI data and the official EU Unemployment Rate and monthly Retail Sales figures.

Other highlights on the economic calendar this week include the UK Services PMI and the release of key Consumer Price Index data from the Chinese economy. Traders will also be closely monitoring ongoing tensions between the United States and Iran. 

Monday 6th January, EU Manufacturing PMI

The EU Purchasing Managers Index is an indicator of business activity in the manufacturing and services sectors. It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before. Released by Markit Economics, it is based on surveys of over 300 business executives in private sector manufacturing companies and also 300 private sector services companies.

• The EURUSD pair is only bearish while trading below the 1.1120 level, key support is found at the 1.1090 and 1.1065 levels.
• If the EURUSD pair trades above the 1.1120 level, buyers will likely test towards the 1.1200 and 1.1300 resistance levels.

Tuesday 7th January, EU Retail Sales

EU Retail Sales measures the sum of goods and services sold monthly at eurozone retail outlets. The report is also considered a measurement of consumption and consumer confidence. Consumer confidence and economic growth signal an increasing number of sales which would fuel the eurozone economy. The changes are widely followed as an indicator of consumer spending and the leading indicator of the health of the EU economy.

• The EURGBP pair is bearish while trading below the 0.8500 level, key support is found at the 0.8400 and 0.8310 levels.
• If the EURGBP pair moves above the 0.8500 level, buyers may test towards the 0.8550 and 0.8640 levels.

Wednesday 8th January, US Private Sector Jobs

The ADP Private Sector employment change jobs report is released by the US Automatic Data Processing Inc and measures the change in the number of people employed inside the American private sector. A rise of this figure is seen as positive and good for stimulating US economic growth, while a weaker-than-expected number is seen as bearish and a possible indicator for future economic weakness.

• The USDCHF pair is only bearish while trading below the 0.9850 level, further downside towards the 0.9660 and 0.9540 support levels seems possible. 
• If the USDCHF pair trades above the 0.9850 level, buyers are likely to test towards the 0.9900 and 0.9925 resistance levels. 

Thursday 9th January, EU Unemployment rate

The EU Unemployment Rate released by the Eurostat is a figure calculated by dividing the number of out of work individuals in the labor force, by all individuals currently in the labor force. The unemployment rate does not include part-time or 'underemployed' individuals who actively seek full-time work. It is a leading indicator for the European economy. If the rate rises it indicates a lack of expansion within the European labor market.

• The EURJPY pair is only bullish while trading above the 121.10 level, further gains towards 121.50 and 122.30 levels remain likely.
• If the EURJPY pair trades below the 121.10 level, sellers may test towards the 120.00 and 118.80 support levels.

Friday 10th January, US Nonfarm Payrolls Job Report

The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. The Non-farm payroll job report is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labour in the United States economy.

• The USDJPY pair is bearish while trading below the 108.40 level, further losses towards the 107.50 and 107.10 levels remains possible.
• If the USDJPY pair trades above the 108.40 level, buyers are likely to test the 109.00 and 110.00 resistance levels.