{"id":161427,"date":"2019-12-09T12:40:54","date_gmt":"2019-12-09T17:40:54","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=161427"},"modified":"2019-12-09T12:40:54","modified_gmt":"2019-12-09T17:40:54","slug":"nfp-breathes-life-back-into-usd","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/nfp-breathes-life-back-into-usd\/","title":{"rendered":"NFP Breathes Life Back Into USD"},"content":{"rendered":"
December 9, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Friday\u2019s payrolls report came in the midst of speculation that the labor market was cooling. This sentiment was set after a weaker than expected\u00a0private payrolls report.<\/a><\/p>\n

However, investors were in for a surprise when the payrolls for November rose by 266,000. The previous month\u2019s payrolls were revised higher to 156,000.<\/p>\n

The official unemployment rate fell to 3.5%, down from 3.6% earlier.<\/p>\n

Euro Slips as Dollar Closes Higher<\/strong><\/h2>\n

The jobs report helped the greenback close the day on Friday with gains. This was the first positive close after nearly five consecutive sessions of declines.<\/p>\n

Economic data from the eurozone was sparse on Friday. As a result, the NFP was the major driver of flows in the EURUSD.<\/p>

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EURUSD Loses the 1.1100 Handle<\/strong><\/h3>\n

The currency pair\u2019s rally to the 1.1100 price level hit a snag after the jobs report. As a result, the euro pared gains, turning lower on the day.<\/p>\n

In the near term, price could retest the minor support level at 1.1072 which was breached. A successful retest of this level for resistance could push the euro lower. The next lower support is at the 1.1000 handle.<\/p>\n

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OPEC Announces Deeper Production Cuts<\/strong><\/h2>\n

OPEC members including Russia concluded their semi-annual OPEC meeting in Vienna last week. The cartel of oil-producing nations announced even deeper cuts at the meeting which concluded on Friday.<\/p>\n

Oil production is set to be cut down by a further 500,000 barrels until March 2020, bringing the total production cuts to 1.7 million barrels. Oil prices rose as a result of the OPEC decision.<\/p>\n

WTI Crude Oil at a 3-Month High<\/strong><\/h3>\n

Oil prices were bullish, with the price action over the past week indicating that traders were anticipating the bullish news. By Friday\u2019s close, WTI crude oil settled near a three-month high, closing at $59.08. This was after the intraday rally pushed oil to highs of $59.81.<\/p>\n

In the near term, oil prices could pullback to the support level of the 57.87 \u2013 57.64 region. But further could come if this support holds.<\/p>\n

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Gold Slips on Jobs Data<\/strong><\/h2>\n

Gold prices fell over 1% on Friday after the blockbuster jobs report. On all front, the payrolls report came out better than forecast.<\/p>\n

Wage growth was the only blot, easing to 3.1% on an annual basis, down from 3.2% in October. The solid jobs report now pushes the possibility of a Fed rate cut further down the line.<\/p>\n

XAUUSD Could Maintain Bearish Momentum<\/strong><\/h3>\n

As XAUUSD broke below the support level of 1460, the Stochastics indicator is pointing to a possible reversal. However, we expect to see the 1460 level being retested once again for resistance.<\/p>\n

If this level holds, then XAUUSD will be on track for a move lower to the 1445 level of support in the near term.<\/p>\n

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By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Friday\u2019s payrolls report came in the midst of speculation that the labor market was cooling. This sentiment was set after a weaker than expected\u00a0private payrolls report. However, investors were in for a surprise when the payrolls for November rose by 266,000. The previous month\u2019s payrolls were revised higher to 156,000. The official unemployment […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-161427","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=161427"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161427\/revisions"}],"predecessor-version":[{"id":161445,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161427\/revisions\/161445"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=161427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=161427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=161427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}