EURUSD. Unemployment Rate (Aug) Report + Nonfarm Payrolls (Aug) on the 2 of September 12:30 GMT

Will Unemployment Rate and Nonfarm Payrolls august reports positively affect US ecomomy? During her speech last Friday the FOMC chairman Janet Yellen said that the possibility of a refinancing rate hike is increasing, because the labour market data and the GDP are both on an excellent level. All that’s left to do is to solve some issues pertaining to boosting the inflation and the rate hikes can continue. 

It is important to emphasize that a new cycle of rate US rate hikes is one of the most anticipated global economic events at the moment, because it might have a positive impact on world economy. At the moment there is a floating rate in the US = 0.25%-0.50% and it expected that it will be increased either to a fixed value = 0.50% or it will be increased by another 25 basis points up to 0.50-0.75%.

It is vital for labor market statistics to remain on a decent level so that further rate hike would be possible. During the last two months unemployment rate remained on 4.8-4.9% level (significantly lower than target level = 6.0%) while the NonFarm data remain on a very high level (over 250,000):

If the latest unemployment rate figures don’t disappoint, it will have a positive effect on the US dollar.

EURUSD chart:

After the press-conference held by Janet Yellen last Friday, US Dollar significantly strengthened on EURUSD D1 chart and the lower line of an uptrend was broken. What is more, according to the indicator of technical analysis “CCI” the lower line (-100) was broken and it means that there is a high chance of further downward trend.