The U.S Non-Farm Payrolls will be released Friday, 1st November 2019 12:30 GMT and is a key economic indicator that can cause volatility in the markets.
What to Expect this Month?
EURUSD looks decisively indecisive ahead of today’s Non Farm Payroll report, yet this month’s report could well be effected by the General Motors strike and it is expected to show that job growth has slowed significantly in October.
The Non-Farm Payrolls, which are due at 12:30 GMT is expected to show the addition of only 84,000 jobs in October, this is poor compared to the added 136,000 jobs in September. Furthermore, the unemployment rate is expected to rise by 0.1% to 3.6%, which is another worrying sign.
The US dollar may well face strong selling pressure in a convincing manner if the wage growth figure prints are well below their estimates. A drop in the average earnings will put high pressure on the Fed to move ahead with further rate cuts in December or January. It is expected that the average hourly earnings, which are forecasted to rise by 0.3% MoM and 3.0% YoY.
Currently, EUR/USD has so far gained 13 pips in the Asian session, this follows Thursday’s news that Chinese officials talked down the possibility of reaching a long-term deal with the US. However, this will be insignificant as the market’s will be looking at more crucial indicators which could come by way of a surprise in fewer or greater new jobs added, unemployment or average hourly earnings.
Opportunities Around the NFP Reports:
Regardless of the results of the Non Farm Payrolls, the markets always experience moves immediately after the release which offer traders excellent short-term trading opportunities. Positive or negative reports will affect market sentiment which can create new trends and trading opportunities.
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