The US30 dropped 165 points yesterday. This followed the ADP surprise to the upside, showing 235K jobs were created (153K - forecast). This prompted renewed rate hike fears, given the Fed concern over wage inflation.
Kansas City Fed President Esther George said on CNBC that she has raised her forecast for the Fed Funds Rate to increase above 5%. Atlanta Fed President Raphael Bostic said that there is "much work to do" regarding inflation.
Ahead of today's key non-farm employment change (NFP), the US30 is currently neutral, trading between the blue bands, with a daily RSI near 50 (green rectangle). The NFP is forecast to be 200K. Any upside surprise may push the US30 into its bearish channel between the lower blue and red bands.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.