Non-Farm Payrolls to be Released Today
March 5th, 2010 Posted in Daily Forex News, Market Movers
Several news events promise to lead to heavy market volatility in trading today. Chief among these is the monthly U.S. Non-Farm Employment Change Report. The report is widely considered one of the most important pieces of U.S. economic news, and could lead to major gains for the greenback.
09:30 GMT GBP PPI Input
The PPI input measures the change in price of goods and raw materials in the U.K. It is a leading economic indicator, as it is a direct measurement of consumer inflation. The higher inflation is the more likely interest rates could be increased.
Last month, the PPI Input report was well above expectations at 2.0%, and led to some major gains for Sterling. This month, analysts are not nearly as optimistic. With a forecasted figure of 0.1%, the Pound may take some serious losses today, especially against the Dollar. This is of course dependant on the Non-Farm Payrolls figure.
13:30 GMT USD Non-Farm Employment Change
The Non-Farm Employment Change report measures how many jobs outside of the farming industry were lost or gained over the last month. The results of the report are a vital statistic used to calculate American economic health.
The Dollar took some heavy losses against its main rivals this week, and if anything is going to reverse its fortunes, it’s the Non-Farm Employment Report. Last month’s figure of -20K was slightly worse than expected and led to some Dollar losses. This month, analysts are forecasting an even worse number of -56K. Traders should remain cautious as these numbers are notoriously hard to predict. If results should come in better than expected, the greenback could see some major gains.
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Tags: dollar, EUR/USD, Forex Trading, Non-Farm Payrolls, PPI
