The most significant event for the Forex market is tomorrow: the Non Farm Payrolls. This is a highly anticipated figure, that draw attention from all traders. NFP is the most important number for the US dollar, thus for every forex trader.
The market always fluctuates wildly when the Non Farm Payrolls is published on the first Friday of each month at 13:30 GMT.
And how will tomorrow’s Non Farm Payrolls be: the Forex market expects a drop of 500K, after last month’s drop of 533K. Two confusing figures could have indicated the direction of NFP, but they took different directions:
The ADP Non-Farm Employment Change (Automatic Data Processing) showed a whopping decline of 693K – which makes a negative outlook for the NFP (and the dollar).
On the other hand, today’s Unemployment Claims was surprisingly good, at 467K, better than 545K that was the Forex market’s consensus.
So, with this confusing data, only patience is needed before the Non Farm Payrolls is released. In case that figure comes close to expectations, the market will just go wild in all directions.
After an expected figure, forex traders might look to the Unemployment Rate for an indication to the way of the American economy. It’s expected to rise to 7%, an unemployment rate that wasn’t seen for a long time in America.