Forex Signals Note for May 7: Focus on US Jobs


American wrap

US stock markets pushed higher for another session as all attention now turns to the US jobs report due for release Friday morning.

Yesterday we saw another improvement in unemployment claims data with new claims less than 500K. Thanks to huge stimulus measures and an accommodating monetary policy, the data points continue to improve.

On the other hand, US debt and unfunded liabilities in general have now reached levels that are literally out of the ordinary. So while employment is slowly improving, inflation is skyrocketing and commodities continue to advance.

We saw GOLD and MONEY make another leg higher yesterday and the metals will be the ones to watch in the months to come.

The data agenda

The key focus of today’s session will be the US Jobs Report, which is expected to show another significant increase in employment.

The official number of the NFP is expected to be 978,000 new jobs created last month, with the unemployment rate falling to 5.8%.

Canada will also release its employment data, but the numbers are much worse with a loss of -175,000 as many regions are still experiencing lockdowns.

Forex signal update

The FX executive team hannounces a quiet session before NFP data, with two signals in the red and four signals currently open.

XRP – Signal active

XRP was the center of attention yesterday, but we saw the case with the SEC be delayed again until next week. At this point, it seems like it’s just a waste of time. However, there is no doubt that this case will set the standard for the entire industry and send waves, if and when a settlement is found. Interestingly, the SEC bought a law firm specializing in settlements.

EUR / USD – Signal active

The EUR / USD made a small break to the upside, however, our short signal remains open.

Cryptocurrency Update

While Dogecoin gave up some of its earnings yesterday and BTC remained flat, there was quite a bit of attention to what SEC boss Gary Gensler had to say.

Gensler, who is the new boss of the SEC who also assumes XRP, noted that Congress should consider a “regulatory framework” for crypto exchanges.

This is clearly the narrative that we keep seeing being pushed in the media right now and so we know something is happening. It’s a real game-changer for the entire industry and we need to pay attention to it. The biggest mistake you can make is to assume that Bitcoin and even ETH are decentralized whereas they are very clearly based in China.


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