By Rita Ruvinski – Beware of extreme market volatility during the U.S. payroll data today! European markets are closed on Friday for National Holidays and this will substantially increase the risk of erratic trading and very thin volume following the release. The best strategy looks to be to buy USD/JPY on any initial declines to 93.50 or sell EUR/USD above the 1.3550 level
12:30 GMT USD Non-Farm Employment Change/ Unemployment Rate
– The U.S. lost 36,000 jobs two months ago, slightly better than the low expectations. A huge gain of 185,000 jobs is expected now. The special timing and the realization of the high expectations could send the dollar way up.
Although, high expectations can be risky for the dollar – if expectations aren’t met, the EUR/USD may rise to $1.36 and higher. But if expectations are finally met, and a rise in jobs is reported for the latest month, not a revision, the dollar could enjoy the thin volume to extend its gains.
– The Unemployment Rate remained unchanged at 9.7% and is expected to remain unchanged this time as well.
12:30 USD Average Hourly Earnings
– Change in the price businesses pay for labor, excluding the farming industry. It’s a leading indicator of consumer inflation – when businesses pay more for labor the higher costs are usually passed on to the consumer. An increase is expected this time 0.2% from 0.1% last month.
Forex Market Analysis provided by Forex Yard.
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