The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
The volatility for the USD is expected
Information is not investment advice
The level of non-farm payrolls, also known as non-farm employment change or NFP will be out on June 7, at 15:30 MT time.
The indicator represents the change in the number of employed people during the previous month without farmers. Traders pay huge attention to it, as it makes the US dollar highly volatile after the release. Also, we recommend you not to underestimate the unemployment rate and the level of average hourly earnings. These indicators are released at the same time as the non-farm payrolls and they tend to affect the USD as well. Last time, the NFP outperformed the forecasts. It advanced by 263 thousand jobs (vs. 181 thousand expected). However, bulls could not hold their positions due to the lower-than-expected average hourly earnings (0.2% vs. 0.3%). This time the employment data may lead to a different outcome.
• If NFP is higher than the expectations, the USD will rise;
• If NFP is lower than the expectations, the USD will fall.
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
Once in a month, the euro has a very special day of increased volatility at the start of the European trading session.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
PMI reports from the EU, the UK, and the USA will be released during the day!
Today traders await the European Central Bank to make a policy statement at 14:45 MT (GMT+3).