ADP Non-Farm Employment Change to Rock Today's Market!

ADP Non-Farm Employment Change to Rock Today’s Market!

July 1st, 2009 Posted in Daily Forex Overview

Name: Greg Holden

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Today will be an important day for forex traders. Wednesdays typically act as the day with the most trading volume and volatility, and with events such as the US’s ADP Non-Farm Employment Change report being released just prior to the US market open, we will no doubt see a very intense trading session for all USD pairs and crosses, as well as dollar-based commodities (Gold, Crude Oil, Silver). The technical charts for the USD this morning are showing a lot of pressure mounting towards volatile price jumps, which will likely occur just after the ADP’s release at 12:15 GMT.

12:15 GMT – USD – ADP Non-Farm Employment Change
- This report shows the estimated change in the number of employed people in the US in all job sectors except the farming industry.

- It acts as a forecast for Thursday’s Non-Farm Employment report released by the Bureau of Labor Statistics.

- If this report shows that employment is on the rise, or simply shrinking less than forecast, the USD may see weakness as investors pull out of safe-havens and buy riskier assets

- If the report shows employment dropping more than expected, the USD may go on a strong bullish rally.

14:30 GMT – Crude Oil Inventories
- Measures the change in the number of barrels of oil held by commercial firms in the US

- This number has dropped by surprising amounts recently, leading to a rally in Crude Oil prices.

- If this decline continues, we could see more support for Crude Oil, with a target price around $76 a barrel

Gold Tips:
- As of yesterday, Gold’s flat range-trading pattern was finally broken by a sharp downward movement.

- Gold now floats in a new price range between $922 and $930.

- If this range is broken on either side, we could see some intense volatility as the breach will push prices to extremes.

- Open a Gold Trading Account today and earn money off these price movements!