ONLINE FOREX BROKER
New Zealand’s quarterly employment change and unemployment rate indicators are coming today, at 23:45 MT time. Same as NFP for the US, they are central in reflecting the pace of economic expansion in the country. That’s why these releases affect the NZD, which may be traded with NZD/USD, NZD/JPY, NZD/CHF, and NZD/CAD.
Higher employment and lower unemployment rates indicate more workplaces created in the industry and more people successfully obtaining them. Generally, it results from more demand for work within the industry, which in turn comes from a brighter outlook and more expansive plans on behalf of the businessmen and investors. These are affected by macroeconomic factors and reflect the economic status of the country as a whole.
Business owners adjust their plans according to the predicted customer demand and other economic factors, internal to the country. These are the people who have first-hand information about how things are going in the industry. Hence, the change in their plans is the first thing to react to favorable or unfavorable internal economic environment.
Better-than-expected job data reflects the better-than-thought business outlook on behalf of the business owners. That, in turn, creates more-than-expected demand for the corresponding currency in expectation of stronger business performance in the future. Then, the market works on it as a self-propelling mechanism, unless and until negative factual performance or pessimistic outlooks are reported later on. Therefore, strong jobs data pushes the currency up, and the weak one drags it down.
The last data was provided with reference to the Q3 of 2019 in the labor market. The employment rate was at 4.2%, coming a bit higher than the forecast of 4.1%. The employment change was at 0.2%, undershooting the expected 0.3%. Coming as weaker than thought, this jobs data dragged the NZD down a bit, but the overall reaction of the currency was limited and did not see any major trend change.
This time, the forecast is 4.2% for the unemployment rate and 0.2% for the employment change. If the indicator is better than this, the NZD should get stronger against its counterparts. Otherwise, it will drop. The extent of the reaction will be defined by how far away the factual levels will be from those expected by the market. LOG IN
The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
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.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
