What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
High volatility alert: NFP
What will happen?
The United States will post the indicators of employment on April 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. The US dollar reacts greatly to this data. There is even a strategy for trading NFP right after the release. Don’t downplay the importance of the other two indicators, though. Combined, they represent a significant fuel to the US currency. Last time, non-farm payrolls greatly outperformed the forecasts with an increase of 379K. The unemployment rate dropped to 6.2%. The only release that came out in line with the forecasts was the average hourly earnings. As a result, the USD strengthened.
How to trade on the NFP?
- 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
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!