Good morning Traders, Marketers;
Alongside the European Central Bank Rate Decision,
this is the most important event of the week. How important is labor
market data to the Federal Reserve? In his key address at the Jackson Hole
Economic Policy Symposium, Federal Reserve Chairman Ben Bernanke argued that
not only has quantitative easing helped the US economy, that withstanding a further
improvement in the US employment situation, more easing could deployed. Hence,
the importance of Friday’s Nonfarm Payrolls report for August. According to a
Bloomberg News Survey, +127K jobs were added last month, while +163K jobs were
added in July. Similarly, the Unemployment Rate is expected to remain on hold
at 8.3%. The decline in jobs growth is discouraging, but the four-week average
rose to +95.5K in August from +90.5K in July, suggesting that the recent
slowdown may be over. If this is a weak figure, the US Dollar will be hit very
hard. The key pairs to watch are EURUSD and uSDJPY.
Rate Hike Probabilities / Basis-Points Expectations
See the DailyFX Calendar for a full list, timetable, and consensus forecasts
for upcoming economic indicators.
See the DailyFX Calendar for a full list, timetable, and consensus forecasts
for upcoming economic indicators.
DailyFX provides
forex news and technical analysis on the trends that influence the global
currency markets.
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Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com
Happy trading
Terry B.
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