EUR/USD: Good data supported the US dollar. Oil falls amid rising US stocks

Good data on the US labor market was supported on Wednesday by the US dollar, which strengthened against a number of world currencies. Signs of continued employment growth raise the likelihood of further increases in interest rates by the Federal Reserve next year.

According to ADP, the number of jobs in the US private sector in October this year increased by 227,000, while economists had forecast an increase in jobs in the US private sector by 180,000 in the same month.

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The ADP noted that the labor market is still showing growth, despite a significant shortage of qualified personnel, and therefore small businesses find it difficult to close vacancies. However, a significant increase in jobs was observed in all types of industry, despite the problem with personnel.

Wage growth in the United States will have a positive effect on household spending and will support the economy in the future.

According to the report, labor costs in the United States increased in the 3rd quarter of this year, which indicates the continued high demand for labor and influence higher wages.

According to the US Department of Labor, the labor costs index grew by 0.8% in the 3rd quarter of this year after rising 0.6% in the 2nd quarter. The data completely coincided with the forecasts of economists. Wages increased by 0.9% and also increased the payments for health insurance and benefits for 0.4%. Compared to the same period last year, the index rose by 2.8% in the 3rd quarter.

The good data was leveled by a report in which it was stated that the business indicator of Chicago declined in October due to the reduction of new orders.

According to MNI Indicators, the Chicago PMI Purchasing Managers Index fell to 58.4 points in October from 60.4 points in September. The Economists had 60 points in October. Let me remind you that the index values above 50, despite its decline, indicate an increase in activity.

As for the technical outlook of the EUR/USD pair, the pair will not be stopped by an upward correction, which has long been brewing on the market. It is best to consider short positions from larger resistance levels 1.1390 and 1.1420. In the case of fixing the trading instrument under the support level of 1.1330, the pressure on risky assets will again increase significantly, which will lead to a decrease in the area of new monthly minimums at 1.1250 and 1.1215.

Oil

Oil prices fell after a report from the Energy Information Administration of the US Department of Energy.

According to the data over the week from October 20 to October 26, oil reserves rose by 3.2 million barrels. Analysts predicted that the growth of oil reserves will amount to 2.9 million barrels. Gasoline inventories fell by 3.2 million barrels, while distillate stocks declined by 4.1 million barrels.

As for the technical aspect of oil, the further downward movement may be limited by a large level of support in the region of 63.55 by the WTI brand. After testing this range, large buyers will begin to return to the market. In the case of the formation of an upward correction, attention should be paid to short positions after updating the resistance around $ 69 per barrel.

The material has been provided by InstaForex Company - www.instaforex.com