Forex Markets Eye Nonfarm Payrolls
EURUSD and GBPUSD begin the week with cautious momentum after last week’s thin holiday trading, as the US Dollar gained strength in the absence of major economic events. Traders are turning their focus to key data releases, including European CPI, US ISM reports, ADP employment, and Nonfarm Payrolls reports, which could shape both technical trends and market sentiment. This analysis highlights the crucial levels, upcoming events, and positioning insights to help traders stay informed and make smarter decisions.
EURUSD Weekly Outlook
The EURUSD pair closed last week’s trading session lower among thin liquidity and muted trading due the New Year holiday. The US Dollar gained some strength in the absence of major economic events.
This week, traders and investors will mainly focus on the European CPI and the US Nonfarm Payrolls.
EURUSD Focus: CPI, Payrolls, and Market Positioning
On the economic calendar, Monday features the US ISM Manufacturing PMI, which is expected to edge higher at 48.3. On Tuesday, German CPI is forecast to rise to 0.3%.
On Wednesday, European CPI is expected to remain unchanged at 2.4%, while the US ADP employment report is expected to add 50K new jobs. The US ISM Services PMI report is also expected to improve to 52.3.
On Friday, The US Nonfarm Payrolls report is expected to add 55K new jobs, with average hourly earnings expected to rise by 0.3%.
From a technical perspective, the pair remains positive after last week’s close above 23.6% at 1.1719. Traders holding short positions are targeting profits near 1.1500.
Current position sentiment stands at BUY 20% – SELL 80%.
EURUSD chart, January 4th, 2026. Source: TenTrade.com
GBPUSD This Week Focus on ADP ISM and Nonfarm Payrolls
The GBPUSD pair also closed last week’s trading session lower because of thin liquidity and muted trading due to the New Year holiday. The lack of economic events caused the US Dollar to gain some strength.
As for this week, traders and investors will mainly focus on the US Nonfarm Payrolls report.
The economic calendar starts off this week with the release of the US ISM manufacturing PMI report on Monday, forecasted to point higher at 48.3. On Wednesday, the US ADP employment report is expected to add 50K new jobs and the US ISM services PMI report is expected to come in higher at 52.3. The week will end with the release of the US Nonfarm Payrolls report on Friday, which is expected to add 55K new jobs with average hourly earnings higher at 0.3%.
From a technical perspective, the pair remains positive after last week’s close just below 23.6% at 1.3456.
Current position sentiment stands at BUY 20% – SELL 80%.
GBPUSD chart, January 4th, 2026. Source: TenTrade.com
Key Takeaways
Both EURUSD and GBPUSD saw thin liquidity last week due to the New Year holiday, with muted trading across the board.
The US Dollar gained some strength in the absence of major economic events.
Traders will focus on key economic data this week, including European CPI, US ISM reports, ADP employment, and Nonfarm Payrolls.
Technically, EURUSD and GBPUSD show positive bias, with EURUSD above 23.6% at 1.1719 and GBPUSD just below 23.6% at 1.3456.
Market sentiment remains skewed toward selling, with positions averaging BUY 20% – SELL 80%.
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
*The material does not contain an offer of, or solicitation for, a transaction in any financial instruments. TenTrade accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. Pas de représentation Aucune garantie n'est donnée quant à l'exactitude ou à l'exhaustivité de ces informations. Par conséquent, toute personne agissant sur la base de ces informations le fait entièrement à ses risques et périls. à leurs propres risques. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all your invested capital, so please make sure that you fully understand the risks involved.