Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
NFP will shake the US dollar
What will happen?
The United States will publish Non farm payrolls on February 4, at 15:30 GMT+2. It is an indicator which presents a change in the number of employed people during the previous month, excluding the farming industry.
Why is it important?
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. The combination of importance and earliness impacts markets significantly.
Last time the actual numbers were lower-than-expected, as the result EUR/USD gained 500 points in 4 hours.
How to trade on Non farm payrolls?
Compare the actual figures with the forecasts in the economic calendar.
- If the actual figures are higher than the forecast, the USD will strengthen;
- If the actual figures are lower than the forecast, the USD will weaken.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
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.
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.
Every week we expect many interesting events that can shake the market.