Friday, September 7, 2012

09/07 Friday // 12:30 GMT: USD Change in Nonfarm Payrolls and Unemployment Rate (AUG)


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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