Australia, Canada, and EU Attempt to Steal the Fed Monetary Policy
Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Will NFP affect USD?
What will happen?
On March 4, 2022, the US Bureau of Labor Statistics will publish average hourly earnings, nonfarm employment change (nonfarm payrolls – NFP), and, most importantly, the unemployment rate. This report is usually published monthly, often on the first Friday of the month. Average hourly earnings and nonfarm payrolls don’t include the farming industry’s data due to its seasonality.
The Federal Reserve System (the US central bank) considers all of these indicators when making its decisions, especially the unemployment rate, which represents the overall economic health.
How will it affect the dollar?
The US highest unemployment rate was in May 2020, at the COVID-19 peak. Many people lost their jobs, and the rate went up from 4.4% to 14.7%. Now it’s close to pre-pandemic times. In February 2022, this rate was 4.0%.
On February 4, 2022, the last release was a little higher-than-expected, 4.0% vs. 3.9%. As for NFP, the result was much better than expected, 467K vs. 110K.
Apparently, every release is entirely different from the forecast, which means it’s difficult to make accurate predictions. So, the unemployment rate can influence the US dollar a lot. After the last month’s release, the USD boosted and held high for several days.
How to trade on the NFP release?
If the actual rate is higher than expected, it’s good for currency. However, pay attention to other indicators as well.
This rate can strongly affects the market as the job creation is a leading indicator of consumer spending and, therefore, economic activity in general.
- If actual numbers beat expectations, USD will go up.
- Otherwise, it’ll fall.
Check Economic Calendar.
Instruments to trade: EUR/USD, USD/CAD, USD/CHF.
Similar
What to Trade on August 29 - September 2?
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.
USD Moves Weird Ahead of CPI
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.
Latest news
Post-Fed Releases for USD & CAD Traders
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
FED and BOE Make Another Attempt to Beat Inflation
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.
Will the UK and US Cope with Inflation?
Every week we expect many interesting events that can shake the market.
