Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
How Can US NFP Shock This Time?
What will happen?
The US Bureau of Labor Statistics will publish average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on April 1, 2022. The organization publishes the data monthly, usually on the first Friday of the month. Average hourly earnings and nonfarm payrolls exclude the farming industry because it’s seasonal. The unemployment rate is an essential indicator of overall economic health that helps analysts assess the US economic situation.
Possible USD moves
Every month the US unemployment rate is getting closer and closer to the pre-pandemic times, which is a good sign. However, some cities, for example, New York, are still struggling with a 7.6% unemployment rate. So, even if the situation is improving in general, some economically influential cities, in particular, can give unexpectedly negative results. The release from March 4 was a little lower-than-expected, 3.8% vs. 3.9%.
As for NFP, the result was much better than expected, 678K vs. 406K. The results influenced the USD positively. The US currency was rising for the several following trading days.
How to trade on the US NFP release?
If NFP is higher than expected, the USD will rise. If NFP is lower than expected, the USD will fall. The unemployment rate situation is the opposite: the lower the indicator, the better for the US currency.
- If actual numbers of NFP beat expectations, then the USD will go up.
- Otherwise, it will fall.
Check the Economic Calendar.
Instruments to trade: EURUSD, USDCAD, USDCHF.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.