No significant events are expected today.

Data released by the U.S. Bureau of Labor Statistics (BLS) on Friday showed that non-farm payrolls (NFP) increased by 256,000 in December, surpassing market expectations of 160,000 and exceeding the revised November figure of 212,000 (previously reported as 227,000).

The unemployment rate decreased to 4.1% in December from 4.2% in November. Annual wage inflation, measured by the change in average hourly earnings, slightly declined to 3.9% from 4%.

The December U.S. labor market data is likely to strengthen the Federal Reserve’s (Fed) stance on keeping interest rates unchanged in January, supporting the dollar against other currencies. Markets expect the Fed to maintain the target federal funds rate in the range of 4.25-4.50% during the January 28-29 meeting.

Additionally, traders anticipate four interest rate cuts by the European Central Bank (ECB), expected to take place at each meeting through summer. ECB policymakers seem unfazed by these expectations as inflationary pressures in the Eurozone remain largely under control.

The head of the ECB and the Bank of France noted that interest rates would continue moving toward the neutral rate “without slowing the pace by summer” if upcoming data confirms that “price pressures do not persist.”

Recommendation: Trade predominantly with Sell orders from the current price levels.