The us dollar is getting support from US labor market
The U.S. dollar is still in a strong position in tandem with the single European currency. On the morning of Monday, September 10, the main currency pair is trading at 1,1550 slightly decreasing. In favor of the dollar played a strong data received from the employment market of the United States.
Friday’s statistics showed that the unemployment rate in August remained at the previous value of 3.9%, although it does not exclude the probability of decline increased to 3.8%. The number of jobs outside the agricultural sector in August grew by 201 thousand, while waiting for the lift to 191 thousand and the previous value of the indicator 147 thousand Market “inspired” the data on wages: the average hourly wage increased last month by 0.4% m/m against the forecast of growth of 0.2% and the previous fact rise by 0.3% m/m.
It is the fact of “acceleration” trends in index of wages has become crucial for the dollar support. Statistics show that now wages in the US are growing the highest for 9 years pace. This is a positive thing – it means that employers continue to compete to attract labor resources, which is beneficial to the entire sector of employment.
The market is now closely watching a new U.S. steps in the development of a “trade war” with China. “Behind the curtain” last week, the President of the United States Donald trump warned that the White house administration is ready to impose higher tariffs on almost all Chinese imports. This means that in monetary terms the fees will be twice the announced volume of not less than 267 billion USD in addition to the already announced $ 200 billion. For the market it is a risk factor, so demand will be assets of “safe haven”.
On the 1 hour timeframe EURUSD there is a development of the downward trend. The current down-trend has corrected the previous growth trend at the 38.2% Fibonacci scale. The following objectives of its development can be levels of 50.0% (1,1517) and 61.8% (1,1466). At the moment there is a short-term pullback is a correction relative to the last pulse of decline. Correctional this chart may be directed to the resistance line and level 1,1631. But in case of breaking the resistance of the quotes can develop new growth momentum for meaningful local maximum – 1,1733.