The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Will the USD get stronger on NFP?
Non-Farm Payrolls data will be released on Friday at 15:30 MT time.
Instruments to trade: EUR/USD, USD/CAD, USD/JPY, GBP/USD
It is hard to expect any good news on the coming NFP with almost 25mln people having filed for jobless benefits in the US since March. That doesn’t mean, however, that the market will be necessarily downed by it and the USD will lose value. The previous NFP brought the March unemployment rate to 4.4%, which was a very significant surge and notably higher than the market expectation. Nevertheless, the USD reacted to that in a very moderate manner. That may partly be ascribed to the state of shock that financial observers still were in and which did not ease its grip on the market at that time. This time, there will be already much more data, more plans prepared, and more clarity on the past and present economic disposition in the US. Hence, the effect on the market should be more logically shaped and defined by the nature of the labor market data we are about to receive.
- If the data is better-than-thought, the USD will rise.
- Otherwise, it will fall.
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).