Markets are anticipating the US labor market data this week, which will be released on November 20. The upcoming figures will show the state of the US labor market for September. According to some officials, October’s data may never be released due to the shutdown, as no one collected figures for that month. The data may have a crucial impact on the US dollar and many other assets, as it will show how healthy the labor market is and may even give an insight into the next Fed move.

Recent signals have been mixed. The US dollar has some support as market participants are cautious about the upcoming data releases. Moreover, according to the FOMC officials’ comments, the Federal Reserve may stick to the wait-and-see approach during the upcoming meeting in December, which provides further support to the US currency. 

For traders, this week can bring more volatility as, apart from the delayed data, some more releases are coming. 

EUR/USD: Markets Are Eyeing the US Labor Market and Eurozone’s PMI Data

The Eurozone’s PMI data will be released on Friday. According to forecasts, the German manufacturing sector is likely to stay below 50, but add 0.2 points, while services is likely to slow down a bit, but remain above 50. The latest comments from the ECB officials mention that the rate decision will not be taken until 2026, which provides some support to the Euro. However, according to the latest comments from the Fed, the central bank is also sticking to its wait-and-see approach, which supports the US dollar and may push the currency pair even lower.

From the technical analysis perspective, the currency pair is trading close to the lower band of the Bollinger Bands indicator, with the bands moving lower. By breaking below current lows, the currency pair may move to 1.1530 and 1.1500. On the upside, by breaking above 1.1600, the currency pair may target 1.1650.

GBP/USD: The Currency Pair Is Under Pressure Due to Expectations of the December Rate Cut by the BoE

The currency pair is trading sideways on Tuesday amid pressure on the British currency after the Chancellor of the Exchequer, Rachel Reeves, abandoned planned income tax rises. Moreover, softer data continues to put pressure on the pound as market participants expect the Bank of England to consider another rate cut in December.

On the US dollar side, traders and investors are anticipating September’s labor market data, which is expected to show some growth in non-farm employment. According to forecasts, the unemployment rate is likely to remain unchanged, which may also provvide some additional support to the American dollar.

From a technical analysis perspective, the currency pair is trading close to the bottom of the Bollinger Bands indicator. By breaking below 1.3440, the currency pair may move targeting 1.3100 and 1.3050. On the upside, GBP/USD may target 1.3180 and 1.3210.

WTI: Crude Oil Is Trading in a Narrow Range Amid Sanctions and Oversupply Fears

Fears of oversupply put pressure on oil. While the shutdown is over, market participants are evaluating changes in the US economy that may affect oil prices. Moreover, sanctions against oil from Russia support WTI, which makes crude oil trading in a tight range. Major buyers like China, India, and Turkey have already halted purchases of Russian oil and seek alternative resources. 

The situation in the US puts additional pressure on oil as the Fed may avoid cutting rates during the upcoming meeting, which may support the US dollar. 

On the technical analysis side, WTI is trading close to the upper band of the Bollinger Bands indicator. By breaking above 60.25, WTI may target 61.20. On the downside, by breaking below 59.40, WTI may target 58.60 and 58.20.

XAU/USD: Gold Remains Under Pressure Amid Expectations of the Fed Decision in December

Gold remains under pressure as the expectations of the Fed rate cut weigh over the precious metal. According to latest polls, about 43% of market participants expect the FOMC to but rates by 25 basis points in December. This is more than 20% less than previous week. 

From the technical analysis perspective, gold is trading below the middle band of the Bollinger Bands indicator below the descending trendline. By breaking below 4,000, gold may target 3,960 and 3,920. On the upside, gold may target 4,040 and 4,080.