USD/CHF and EUR/CHF rose to tactical highs. What's next?
Will the USD grow with the US labor market?
Information is not investment advice
The US unemployment claims are out on Thursday at 15:30 MT time.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
The labor market is what makes the American economy robust and gives it endurance and prosperity. Keeping the hand on the pulse of the employment dynamics in the US gives you the right direction in drawing correct fundamental perception of the American economy and make projections on the long-term horizons for the USD. The initial jobless claims announced weekly in the US affect the Forex market quite intensely, so watch this indicator: if there is any sign that the mild recovery curve is distorted, it will press on the greenback; otherwise, healthy figures above the forecast will make it rise.
- If the figures exceed expectations, that may push the USD.
- If the labor market underperforms, the USD may go down.
Eurozone, France, and Germany will publish the flash services and manufacturing PMIs on February 19, from 10:15 to 11:00 MT time
Australia will publish the employment change and unemployment rate on February 18, at 02:30 MT time.
Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
BoA has tracked signs of the upcoming stock market sell-off. While more expensive and at-risk stocks are set to fall, value stocks should survive.