The euro and the pound sterling have found reasons to withstand the US dollar and continued gaining in value. However, today’s rise is not as significant as it was yesterday. If forecasts on the US Labor Department report meet reality, both currencies will increase more.
According to analysts, the US unemployment rate may advance to 3.5% from 3.4%. What is more, employment in the non-farm sector is expected to add just 180 thousand new jobs. Taking into account the US population, this is not enough to maintain stability in the labor market. In other words, the unemployment rate may go on rising.
However, judging by yesterday’s employment figures from ADP, official data from the US Labor Department could be well above the forecast. In the event of this, the US dollar will recoup most of its recent losses.
Let us take a look at the trading charts.
The euro/dollar pair is launching a recovery process after the recent decline. By the moment, the pair has slightly recovered. However, traders have already received the initial signal of the asset’s rise. To climb higher, the quote should consolidate above 1.0800. In this case, the pair will be able to grow to the range of 1.0900-1.1000. Notably, a sharp price change may cause overbought conditions in the short-term periods. The recovery may also result in a change in the market sentiment. Stagnation or a drop will prove this assumption, especially amid strong data on the US labor market.
Meanwhile, the pound/dollar pair is rapidly gaining in value. It has already exceeded the level of 1.2500. This is an initial technical signal of the pound’s recovery after the recent decrease.
Under the current condition, a sharp price change seen yesterday gave a technical signal of overbought conditions in the intraday and short-term periods. The target level is located at 1.2550. However, the pair slackened near this level, thus spurring a slump in the volume of long positions and stagnation (*). This is where the pound sterling will wait for news from the US. Nevertheless, if the price consolidates above 1.2550, speculators may ignore a technical signal of overbought conditions. In the event of this, the pound/dollar pair may go on climbing towards the high of the mid-term uptrend.
That’s all for now. We keep monitoring the financial market situation. Subscribe to our channel. See you in several hours. We will take a close look at the US trading session.

00:00 Intro
00:23 What are we waiting for in the flow of statistics from the U.S.
00:50 ADP Employment data
01:06 EUR/USD
01:59 GBP/USD
03:01 Conclusion

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