After closing the previous trading day at $175.9, Arabica Coffee is up to $178.35 per pound, which makes for a move of 1.39%/$2.45 today.
United States Non Farm Payrolls data will be released today at 13:30 UTC, with an expected decline to 185,000.
Arabica Coffee upside coincides with further encouraging market factors as United States Initial Jobless Claims beat analyst expectations of 200,000 and the previous reading of 186,000 with new data of 183,000.
Meanwhile, United States Factory Orders released earlier showed a marked improvement to 1.8% from the preceding data of -1.9%, but fell short of the 2.3% figure forecast by a consensus of market analysts. United States Unit Labor Costs (QoQ) (Q4) came out at 1.1, while a consensus of analysts was expecting 1.5.
Trend analysis indicates that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at $180.23, thereby suggesting that the Coffee future is becoming overvalued.
With market volatility ebbing, the current technical outlook indicates Coffee will remain range-bound for the immediate future.
Rallies can also be seen in other Softs, Sugar climbs 1.54% to trade around $21.7.
At the same time, Cotton is trading around $85.7 (down $1.4).
Also worthy of note, United States Non Farm Payrolls projected to come out at 185,000 — worse than previous data of 223,000; data will be released today at 13:30 UTC. As things stand, upcoming United States Unemployment Rate data is projected to fall short of market expectations with newly published data of 3.6, following on from the preceding figure of 3.5. New data is set to be published today at 13:30 UTC.
Furthermore, the market is looking at United States ISM Non-Manufacturing PMI (Jan) is scheduled for today at 15:00 UTC.
Arabica Coffee is now trading 16.41% above the significant low ($151.1) it slumped to 17 days ago.