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.
Weekly US employment: a chance for the USD
What will happen?
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3). This indicator shows the number of individuals who filed for unemployment insurance for the first time during the previous week.
Why is it important?
This release provides the freshest insight into the situation in the US labor market. Based on its change, traders may suggest the level of the next non-farm payrolls.
In the picture below, you can see how better-than-expected figures affected the US dollar.
How to trade on the US Unemployment Claims?
To trade on this economic release, check the calendar on the FBS website.
- If the Unemployment Claims are smaller than the forecasts, the USD will strengthen;
- Alternatively, the USD will weaken.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
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.
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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.