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05.10.202308:53 Forex Analysis & Reviews: Trading plan for EUR/USD and GBP/USD on October 5

Dollar unsurprisingly weakened as employment in the US increased by only 89,000, instead of the forecast of 160,000. It started falling right from the opening of the trading session, primarily due to the forecast itself.

To maintain labor market stability, employment should grow by more than 200,000 per month. It may grow less, but in the next month, it should increase much more. However, in the US, employment continues to grow at insufficient rates.

If not for the data in Europe, dollar will certainly weaken more. According to the report, the pace of retail sales decline in the region accelerated from -1.0% to -2.1% against a forecast of -1.4%.

Dollar also remains overbought, so despite the completely empty macroeconomic calendar today, it may continue to lose its position. And even if the data on jobless claims comes out, it will not have any impact as its changes will not be very significant. Unless, of course, the actual data matches the forecasts.

Exchange Rates 05.10.2023 analysis

EUR/USD bounced back after another cycle of decline. This resulted in the partial rise of euro, in which it managed to climb above 1.0500 despite the oversold conditions. Staying over this level may lead to further strengthening, while a resumption of the speculative downward sentiment will bring the pair below 1.0470.

Exchange Rates 05.10.2023 analysis

GBP/USD also bounced back, pushing the quote above 1.2150. Staying over this level will lead to further strengthening, while a resumption of the bearish sentiment will bring the pair to the upper boundary of the psychological level at 1.2000/1.2050.

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Mark Bom,
Analytical expert of InstaSpot
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