Investors look to the NFP for signs of a slowing economy.
Non Farm Payroll – May 05, 12:30 GMT: The high impact Non Farm Payroll (NFP) will be released today and this report is considered a key US economy report and triggers sharp market movements.
Last month’s Non Farm Payroll seems to have been a blip where only 98K jobs were created, and the markets will look for a better NFP later today. It's expected that the figure may come out a little below the consensus, but one area of concern is the ISM non-manufacturing employment component as in April this fell further to 51.4 from 51.6 in March.
A reading of 180k-190k will not cause too much impact on the markets; however another weak report could unsettle the stock markets. Currently US indices are trading at high valuations and there could be significant changes if US jobs market shows signs of slowing down.
Overall, the NFP report is crucial for the markets to gauge the strength of the US economic and for indications of a June rate hike from the Fed. Any significant growth or decline in expectations will cause market volatility and excellent trading opportunities.
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