Nonfarm Payrolls are likely to climb for the third month to 647,000. The projection of first-quarter economic growth, along with the successful vaccination drive in the US, support this growth in the job market. Investors seem to be awaiting further opportunity following the Nonfarm Payrolls and US unemployment data.
Moreover, following yesterday’s sudden rise in the US Jobless claims, it created a fear in the market. The fear is Nonfarm Payrolls might not meet the projected figures, which could be slightly negative for the US dollar in the near term. Furthermore, thiseconomic growth positivity could be premature as in Europe COVID cases are escalating day by day. Such uncertainty might favour the US dollar in the near-term period.
Nonfarm Payrolls are projected to add up 647,000 jobs in March, the highest total since last October. The unemployment rate is expected to drop to 6% from 6.2% in February. If the projections meet or surpass the final readings will be positive for the US dollar. However, if in case of market observe any set back then we might see a further drop in the US dollar index.
The 92.5 level proved to be a key support zone, based on the technical analysis. However, at the top 93.7 level appeared to be a major resistance zone where bulls might pause before moving for further upside levels.