Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
NFP: USD getting even stronger?
Information is not investment advice
These were the figures released in the February NFP:
- Av. Hourly Earnings were 0.2% against the 0.3% expected
- Employment Change was 49K against 85K expected
- Unemployment Rate was 6.3% against the forecast of 6.7%
As the market was unimpressed with the data, the USD started losing value
In fact, it started depreciating before the release - the figures provided by the US Labor authorities just enhanced the effect. That's very visible on the chart below: EUR/USD rises in the marked period from 1.1980 to 1.2050 and keeps rising later on after a brief correction.
Here is what observers expect:
- Av. Hourly Earnings to stay steady at 0.2%
- Employment to increase by 182K
- Unemployment Rate to stay steady at 6.3%
- Join our top analyst Nour El Deen Al-Hammoury to trade the NFP live
- If the Average Hourly Earnings and Employment are higher and Unemployment Rate lower than expected, the USD is likely to rise
- If the Average Hourly Earnings and Employment are lower and the jobless rate greater than expected, the USD will soften
Weak NFP data drives the USD down; better-than-thought figures makes the USD stronger
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?
First, "ETH merge" Google requests are on the rise. At the same time, "buy ETH" requests are at their two-year lows, which is quite a negative factor ahead of the vast update. The community either doesn’t believe in the success, or they are following the "buy the rumors – sell the news" rule and waiting for the massive dump after the merge.