The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3).
The USD Awaits Key Jobs Data
What will happen?
The United States will publish the non-farm employment change, also known as non-farm payrolls or NFP at 15:30 MT (GMT+3) time on August 6.
The NFP is considered one of the leading indicators of employment that represents the economic activity of the country. Additionally to this measure, you need to pay attention to the level of average hourly earnings and the unemployment rate released at the same time as NFP. Last time, the indicator significantly outperformed the forecasts (850K vs 725K expected). At the same time, the unemployment rate rose to 5.9%, above the forecast of 5.6%. These figures made the USD turbulent.
How to trade on the Non-Farm Payrolls?
Follow the economic calendar and compare the actual figures with the consensus given.
- If NFP and the average hourly earnings are higher and the unemployment rate – lower than the forecasts, the USD will rise;
- If the situation is different, the USD will fall.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
Quadruple witching is gone and now there are no reasons for the market to hinder. From banks statements and economic data to gas storage reading and Fed’s Powell speech – get ready for active trading.
The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
The Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3).
That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.