USD Traders Anticipating Heavy Volatility

Name: Rita Ruvinski

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Prior to the heavy news cycle we will see today and Friday, the US Dollar has apparently entered a consolidation trend against most of its currency rivals. Today’s news will set the pace for the remainder of the week while Friday’s releases may impact the market, especially the value of the USD, heavily for the rest of the month. Don’t miss out on these movements! Open your own Forex Trading Account today!

13:15 GMT: USD – ADP Non-Farm Employment Change

- Estimated change in the number of employed people during the previous month, excluding the farming industry and government.

- Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.

- This report will impact EUR/USD strongly, as better than expected data will be negative for the Dollar as risk appetite may then increase.

15:30 GMT: USD and Crude Oil – Crude Oil Inventories

- Change in the number of barrels of crude oil held in inventory by commercial firms during the past week.

- It influences the price of petroleum products which affects inflation, but also impacts growth as many industries rely on oil to produce goods.

- While this is a US indicator, it mostly affects the CAD due to Canada’s sizable energy sector.

19:15 GMT: USD – Federal Funds Rate

- The rate decision is often priced into the market so it tends to be overshadowed by the FOMC Statement which is focused on the future.

- The Fed is widely expected to keep its benchmark interest rate where it has been since December, at 0.25%.

- Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future.

- Expect heavy USD volatility following this release.