It’s that time of the month, get ready folks - Forex News by FX Leaders

It’s that time of the month, get ready folks

Posted Friday, September 2, 2016 by
Skerdian Meta • 2 min read

Yep, it´s that time of the month again when we get to see how the US employment sector has performed in August. The unemployment rate and the non-farm employment change (NFP) used to take all attention up to a year ago. But, with the unemployment falling below the 5% natural level and the monthly job creation getting back to satisfactory levels after the little shakeup in May, the spotlight goes to the average hourly earnings (wages). 

So, we don´t expect the unemployment rate and the employment change to move the forex market today unless the deviation from what´s expected is substantial, probably 0.2% or more for the unemployment rate and more than 100k for the employment change. The increase/decrease in the wages on the other hand, shows how good the businesses in the US are doing. If there is a pickup in business activity, then that will put pressure on businesses to keep the working staff from leaving for better paid jobs, thus increasing the wages/salaries, that´s the reason the average hourly earnings have become increasingly important. 

Forex market, can we please get a move higher in GBP/USD so we can open a sell forex signal at better levels? 

Looking at the forex charts, we cab see that the forex traders are positioning themselves before the data release and that´s why EUR/USD is sliding down. We will keep an eye on this forex pair but my gut tells me that GBP/USD will offer a better opportunity for a long term sell forex signal. If the US employment data disapoints, then GBP/USD is likely to make a move higher, the magnitude of which will depend on how badly the employment data misses, probably up to 1.335-1.34. That will be the perfect spot to open a sell forex trade. 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments