Nonfarm Payrolls is in Focus Today
The situation on the labor market still looks optimistic. Today we expect the Unemployment rate data. 3.5% is expected.
A Grand Day for the USD
What will happen?
The United States will post the indicators of employment on July 2, at 15:30 MT time. You will get an opportunity to trade on the average hourly earnings, the unemployment rate, and, of course, on the non-farm payrolls (NFP). The last indicator tends to be the most important one. It represents the change in the number of employed people during the previous month without the farming industry. Last time, the data was mixed. Despite expectations of +645K, non-farm employment change rose by 559K. At the same time, the unemployment rate dropped to 5.8%, and average hourly earnings advanced by 0.5%. Still, traders were disappointed by non-farm payrolls, and the USD plunged.
How to trade on the NFP?
There are different ways for taking advantage out of the NFP release. Firstly, you can check the strategy for trading on NFP. Secondly, pay attention to the economic calendar.
- If the NFP is greater than the forecasts, the USD will rise;
- In case of an alternative scenario, expect a fall of the USD.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
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