Non Farm Payroll Alert

Dear Traders

The U.S Non Farm Payrolls will be released Friday, 2nd of February 2017 13:30 GMT which is a key economic indicator that can cause significant volatility in the markets.

What to Expect this Month?
The Non-Farm Payroll today will round off an eventful week that has seen major US stock indices post their biggest pull-back since June 2016.

The expectation for today's report is for a 180k increase in jobs in January, if this happens it will represent a good reaction following last month’s disappointing rise of just 148k instead of the expected 190k. A number over 200k will give the US dollar a boost, but anything fewer than 160k should drag the dollar value down.

The data on wage growth has been seen as higher importance recently as this directly effects inflation. Average Hourly Earnings are expected to rise by 0.3% month-on-month, but still unchanged from December’s release. Market experts have been expecting a growth here for a while that is yet to materialize, and there is a consensus that today's figure will disappoint. If this is the case, it could weigh on the dollar regardless of added jobs.

The markets will also be focused on the 10-year Treasury yield as if it continues to push above 2.7% then global equities could come under pressure.

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.

Economic Calendar:
Follow the major news events here: https://www.yadix.com/forex-trading-community/economic-calendar/