Trading insight: Tomorrow’s US NFP jobs report likely to surprise

As of June 1 2023 6:41 UTC. The above chart illustrates US monthly Job openings (JOLTs)

Market Talk

The US JOLTs report suggests that tomorrow's nonfarm payrolls (NFP) could be much higher than what analysts suggest

The US job openings for the month of May jumped from 9.745 million to 10.103 million, suggesting that US employers require more employees to fill positions.

If employers need more employees, that could imply that the Fed is going to be facing strong headwinds getting inflation under control.

Is US dollar strength going to prevail in the days ahead? EUR/USD bearish conditions seem to be holding. Further downside towards 1.0610 can not be ruled out in the very short term (5-13 days), while upside risk is seen above 1.0880.

EUR/USD daily chart as of June 1 2023 7:07 UTC

Crude oil prices bouncing higher; Brent crude current price is at $73.30 after finding support near $71.30. Key driver OPEC+ meets this weekend and speculators could be positioning for a potential upside surprise, however, any move higher could be just a “corrective bounce” as the prevailing trend remains bearish.

• Upside prospects seen limited towards the $78.20’s in the very short term (5-13 days)
• Downside risk below the $71.30s could place the $70 round number in sight

Brent Crude Oil daily chart as of June 1 2023 7:11 UTC

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Today’s economic calendar

Source: TradingView / J. Knobel June 1 2023 6:20 UTC