Forex Daily Outlook – March 5th 2010
Daily Look

Forex Daily Outlook – March 5th 2010

In the last day of the week, the scene is clear for the king of forex – Non-Farm Payrolls. Let’s see what it’s expected to bring us, and what other events are out there.

Trading during this day, and especially around the release is different than normal days. The markets trade in high volatility. I recommend reading my 5 notes for Non-Farm Payrolls trading.

Britain’s producer prices jumped last month, and are expected to rise by only 0.1% after a jump of 2% last month (PPI Input). Another rise might help sterling recover from the blow it got at the beginning of the week.

For the Pound’s technical levels, check out the GBP/USD forecast.

In Europe, German Factory Orders are predicted to rise by 1.6%, following a disappointing drop of 2.3% last month.

The Euro continues to float in its range. For more, read the EUR/USD forecast and Casey Stubbs’ latest analysis.

Non-Farm Payrolls are expected to show a loss of 40,000 jobs. These low expectations come after two months in which economists were  optimistic  about jobs. Also the unemployment rate is expected to be worse than last time – 9.8% instead of 9.7%. Whatever the outcome, the markets will rock around this release.

In my Nonfarm payrolls preview, I wrote that the low expectations are good for the dollar. Only a big drop will hurt it.

Also in the US: Average Hourly Earnings are expected to rise by 0.2%, exactly like last month, and Consumer Credit is expected to drop by 4 billion.

That’s it for a very busy week. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.