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.
NFP: three magical letters for your capital
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
What is NFP? It is the change in the number of employed people during the previous months excluding the farming industry. Traders pay huge attention to it, as it makes the US dollar highly volatile after the release. Also, we recommend you not to underestimate the unemployment rate and the level of average hourly earnings. These indicators are released at the same time as the non-farm payrolls and they tend to affect the USD as well. The previous release of jobs data disappointed the market. Non-farm payrolls declined by 145K (vs. the market expectation of 162K), while average hourly earnings declined by 0.1%. The USD got weaker on the release.
• If NFP outperforms this time, the USD will strengthen;
• If NFP underperforms, the USD will weaken.
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