Alex Weber: what to expect from NFP?
As usual, on the first Friday of the month traders are focused on the US Non-Farm Payrolls release. I would expect NFP to increase by about 250K in November, that means slightly above the consensus forecast. The figures will confirm a sustainable recovery of the US labor market and support the overall USD demand.
Yesterday the ECB disappointed the market by delivering no QE, but I see the bullish effect for EUR/USD limited. Strong NFP figure will help to offset the Draghi-driven rally.
That’s why I recommend selling EUR/USD around the current levels ahead of the NFP with an initial target of 1.2300.
Good luck and best regards,