The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Get ready for the NFP excitement
There are many economic indicators. Some can be ignored, some can be traded and some are so well-known among traders that they should be definitely taken into account no matter what you plan to do.
US Nonfarm Payrolls or NFP for short is one of such indicators. The secret of its high market impact is that it’s very difficult to forecast, so the actual reading usually significantly differs from the forecast level. Traders often get surprised with NFP, and the US dollar comes in motion.
NFP will be released at 15:30 MT time on July 6. Notice that it is not the only release that will come out at this time. It will be accompanied by the publication of Average Hourly Earnings and Unemployment Rate. As for average earnings, the higher is its growth, the better for the USD. The situation is opposite to the unemployment rate. The USD strengthens when the unemployment rate declines.
• If the data is better than the forecast, the USD will go up.
• If the data is worse than the forecast, the USD will go down.
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