What events to follow and how to trade during the week of July 2-6?
Hooray! It’s NFP day!
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
The US NFP report will come out on January 8 at 15:30 MT time. Keep this time free, otherwise, you risk missing the crucial event for the whole Forex world that occurs only once in a month! Let us quickly remind you of what it is and how the market usually reacts. NFP or non-farm payrolls represent the change in the number of employed people during the previous month, excluding those who work in the farming industry. The more people are employed, the better the economic conditions are. In contrast, the fewer people are employed, the worse the economic conditions are. Easy! However, the market reaction depends on whether the actual NFP is better than the forecast or not. Elsewhere, it’s important to pay attention to two other indicators released at the same time with NFP: average hourly earnings m/m and the unemployment rate.
- If all the three indicators come out better than the forecasts, the USD will rise.
- If all the indicators are worse than the forecasts, the USD will drop.
- If NFP comes better, but earnings – worse, the USD will spike at first, but it will fall with the second wave.
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!
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!
The Bank of England will publish a monetary policy statement and update on the interest rate on Thursday, at 14:00 MT time.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).