Jan 29 – Feb 2: NFP, FOMC & CPI, This Week Offers Everything You Wish For
Arslan Butt • 3 min read
Welcome back to another exciting week. This week brings a loaded high impact US fundamentals to be released each day from Monday to Friday. Are you looking to trade Gold, US Dollar, and Indices? Let’s get prepared before placing trades.
Economic Data Set This Week
This week offers one of the most awaited economic events such as NFP (Non-farm employment change) and FOMC. The Greenback is likely to stay supported over the optimistic forecast of the US labor market figures.
Monday – Jan 29
It’s just another normal Monday with no major activity. However, the investors will be trading the market over sentiments. Looking at the forecast of NFP, it appears like the economists are anticipating positive labor market reports from the United States. Thus, the investors are likely to take early positions to get the maximum benefit of the news.
Nonetheless, the Core PCE Price Index and Personal Spending will be in focus at 13:30 (GMT). Not much action is expected on this news.
Tuesday – Jan 30
Okay, tomorrow we can expect some nice opportunities in the US denominated currency pairs, including the bullion market.
EUR – German Prelim CPI and Prelim Flash GDP carries importance to determine the trends in the single currency Euro. Both of the figures are expected to be better than the previous ones.
USD – At 15:00 (GMT), the CB Consumer Confidence will be monitored by the investors. Fellows, this data will be of high importance on Tuesday as this usually causes nice tradeable volatility in the market. It’s expected to be 123.2 vs. 122.1, giving us another reason for a bullish Dollar.
Wednesday – Jan 31
It’s going to be the second most important day after the Friday in this week. We have some really high impact economic events due not only from the United States but also from the global economies.
AUD – At 0:30 (GMT), the Australian CPI (consumer price index) will shake the market during the Asian session. The figure is expected gain at a higher pace by 0.7% vs. 0.6% in the past.
USD – Besides President Trump Speaks at 2:00 (GMT), investors focus will remain on the ADP Non-Farm Employment Change at 13:15 (GMT) and FOMC Statement at 19:00 (GMT). But this time, the FOMC isn’t expected to drive much volatility. Investor’s aren’t expecting any change in the Fed Fund Rate.
Tip: The next rate hike from the Fed is expecting in March 2018. However, it’s still worth seeing the FOMC statement for further clues.
EUR – Besides AUD and USD, we may have some good opportunities in the Euro currency pairs also. The German Retail Sales and CPI Flash Estimate are likely to weight on the single currency as almost all the data sets are forecasted negative.
CAD – We can’t neglect the importance of Canadian GDP at 13:30. As of now, the forecast of data isn’t available, but the divergence of up to 0.5% on any side is likely to cause nearly 100 pips movement in the USD/CAD.
Thursday – Feb 1
Typically, the market exhibits really thin trading volume and volatility ahead of the big day as the investors try to save their shots ahead for the NFP. On Thursday, from all the economic events, the investors will be eyeing Manufacturing PMI from the UK and ISM Manufacturing PMI from the US at 9:30 (GMT) and 15:00 (GMT) respectively.
Friday – Feb 2
Here comes a boss of all, the NFP (Non-Farm Employment Change) and Unemployment Rate. Both of these economic data sets will be monitored at 13:3 0 (GMT). NFP is expected to be positive at 184K vs 148K in the last month. But, the Dollar is less likely to strengthen on the news release as most of it will be priced in during the course of this week. Anyhow, the weaker data will offer the opportunity to short Greenback for quick 60 – 100 pips.
That’s all for now, but stay tuned for live market updates and forex trading signals. Good luck from team FX Leaders and have a profitable week.