High Volatility alert tomorrow on NFP.
This article is originally referred from IronFX News.
US employment report for April, will be released on Friday at 12:30 (GMT) and is expected to cause increased volatility to USD crosses.
- Non-Farm Payrolls figure: Expected 192k, previous figure 103k.
- US Unemployment rate: Expected at 4.0%, previous reading 4.1%.
- US Average Earnings growth rate: Expected at +2.7% on a year on year basis, previous respective reading 2.7%.
Should the actual results meet the forecast, we see the case for a rather strong employment report which could support the USD.
Overall, we see that the labour market is tightening even further, as implied by the downtick of the unemployment rate and further tightening could accelerate the average earnings growth rate in the near future.
Overall everything seems to be set for a widely expected June rate hike by the Fed as the core PCE index rate is approaching +2.0% yoy and the unemployment is forecasted to drop to the lowest level of more than a decade.
The Employment Report is announced on a monthly basis every first Friday of the month.
It consists of a basket of employment reports such as the Unemployment rate, Average Hourly Earnings, and the Non-Farm Payrolls report.
The Non-Farm Payrolls report is a highly significant event and one of the biggest market movers in the Forex markets.
Original Source: IronFX News