NFP Friday 07/08/2020. Are you ready to trade?

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What to expect from NFP release? Hello, Trader FX The U.S. Non-Farm Payrolls Report (NFP), which comes out this Friday on 07.08.2020, is positive on the consensus forecast, but less than last month. It may indicate that the U.S. economy has recovered slightly from the global economic crisis caused by COVID-19, but it cannot yet bounce back and start a full recovery process. The head of the Federal Reserve Jerome Powell said last Wednesday that in any situation, the central bank would act in the interests of the U.S. economy, and if necessary, to take a new package of measures to stimulate the country's economy. At the moment, there is no such need, but the Fed is not going to raise the Fed's rates yet. It is possible to assume that the Fed members see the light at the end of the tunnel in the current situation. Go to Cabinet Non-Farm Payrolls Employment Last data: 4800 K Consensus Forecast: 1360 K With the quarantine and the economy slowing down, analysts are afraid to give positive forecasts for the report. But the facts prove that the results for the last three months exceed the analysts' estimates. It is quite understandable. Everybody is afraid of the second wave of coronavirus and new quarantine measures, which may lead to a sharp deterioration of business in the non-agricultural sector. U.S. Average Hourly Earnings YoY Last data: -1.2% Consensus forecast: -0.5% This indicator shows the change in the average hourly wage level for major industries, except agriculture. Unemployment Rate Past data: 11.1% Consensus forecast: 10.7% Past unemployment data came out better than the consensus forecast of 12.3% - 11.1%. It shows a stable, gradual decrease in unemployment in the USA, which has a positive impact on the U.S. economy and changes the rhetoric of the Fed. In the previous release of data, the movement on the EUR/USD currency pair at that moment made 38 points. More interesting course of events took place on the asset, which closely correlates with the currency pair EUR/USD - gold, at the moment of publication gold prices fell by 74 points! To keep your open positions and survive during the time of market volatility due to news release, make sure you have enough funds in your account. Deposit Funds Keep in mind: During the NFP announcement, expect high volatility, especially across USD pairs. Market sentiment can really affect currency movements. What traders expect from the report has as much impact as the actual released data, if not greater. A higher figure than the one registered during the previous month signifies an improvement in employment numbers. This, as well as the release of a higher-than-expected figure, means an increase in the number of jobs created and are positive for both the U.S. economy and the dollar. A lower figure than the one registered during the previous month, as well as a lower-than-expected figure, usually have a negative impact on the dollar as they demonstrate a drop in employment numbers. Remember that the sudden spike observed across the charts of many currency pairs upon the release of the NFPs is usually followed by a period during which the market tries to recover and return to its initial price levels. Please do not hesitate to contact us  with any questions in livechat   or e-mail us at support@paxforex.com Risk Warning:Forex and CFD trading carry a high degree of risk. As such they may not be suitable for all investors. Investors should ensure they fully understand the risks associated with CFD trading before deciding to trade. Investors may choose to seek independent advice and should not risk more than they are prepared to lose.

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