NFP Data Takes Center Stage

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NFP Data monthly release

NFP Data 

Financial market traders and investors will be looking at the NFP data (Non farm payroll) in the United States as it will indicate how far the economy has recovered in recent weeks.

USD Outperformed by the CAD and AUD

The Greenback was one of the best performers last week, surpassing many other major currencies. Initially, the Greenback tanked in response to Janet Yellen’s comment that the U.S. might run out of cash to pay its bills in three weeks. However, the USD strengthened against the Euro by 1.08% last week after Fed Chair Jerome Powell stated that the economy is far from maximum employment. 

This shows how much the markets can move and react to comments and data and puts lots of pressure on one of the biggest market movers of the month, the release of the NFP data the first Friday of October. Learn more about trading the NFP monthly.

Forex Signals In Review

Our Forex Signal Trading Team capitalized on last week’s strengthening Greenback, sending a signal on September 28th to buy the USD/CHF pair at 0.9291. This signal successfully reached all 3 of our Take/Profit targets and gained a total of 76 pips. On September 29th, we sent a signal to buy the USD/CAD pair at 1.2684. Again, this trade flew through all 3 of our targets and gained a maximum of 89 pips.

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Major Economic Events: NFP data to be presented on Friday

RBA interest rate decision: Tuesday

The Reserve Bank of Australia is not expected to make any monetary policy changes in the upcoming event. The bank had decided to extend its asset purchase program for another three months. Recent data from Australia has been mixed, with figures currently weaker than expected. Hence, the policymakers are not likely to make any moves for now.

RBNZ interest rate decision: Wednesday

Analysts are expecting New Zealand’s central bank to announce an interest rate hike this week. The rate will likely increase from 0.25% to 0.50%. Economic data from the country has been upbeat, with the latest GDP and inflation figures surpassing expectations. Hence, there is no reason for the apex bank to delay tightening this time. Traders will be interested to know if the central bank will go for another interest rate hike next month, considering the upcoming one has already been priced in over the past few weeks.

NFP Data: Friday

The main event of the week is from the United States, and it is the NFP data. For last month, analysts had predicted a job increase of 490k, which would see the unemployment rate drop from 5.2% to 5.1%. The data would be better than the disappointing 235K increase reported in the previous month,

Canadian employment report: Friday

In the neighboring country, Canada is also set to release its job figures for September on Friday. The market is expected a slower job increase of 61.2k for September. However, despite the slow growth, it will bring the unemployment rate down from 7.1% to 6.9% for the month.