Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
It’s NFP time again
The United States will publish the non-farm employment change, also known as non-farm employment change or NFP at 15:30 MT time on March 6.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
The indicator represents the change in the number of employed people during the previous month excluding the farming industry. Traders pay huge attention to it, as it makes the US dollar highly volatile after the release. It’s worth mentioning that it comes out at the same time with the level of average hourly earnings and the unemployment rate. The previous release contained mixed data. While NFP showed an increase of 225K jobs (vs. the forecast of 163K), average hourly earnings came out lower than analysts’ expectations (0.2% vs. 0.3% expected). At the same time, the unemployment rate reached 3.6% (vs. the forecast of 3.5%). As a result, the reaction of the USD was limited.
• If the NFP and average hourly earnings are higher and the unemployment rate is lower than the forecasts, the USD will rise;
• If the NFP and average hourly earnings are lower and the unemployment rate is higher than the forecasts, the USD will fall.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
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 Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.