How To Trade The US NFPs Release

Written by John Kicklighter, Currency Analyst, DailyFX
Thursday, 04 October 2007 13:14:56 GMT

The non-farm payrolls release has not only been the consistent top market mover for the US dollar, it is arguably the most influential fundamental indicator for the entire FX market. Further adding to the employment number’s clout, this month’s report comes just after the first negative print in four years. As such, many market participants, economists and policy makers believe the world’s largest economy is coming to a major turning point. For years, strong employment trends have supported the economy’s primary engine: consumer spending.

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What About Canadian Employment?

Written by Kathy Lien, Chief Currency Strategist
Thursday, 04 October 2007 21:41:02 GMT

Even though most traders will be focused on the US non-farm payrolls report tomorrow, with the Canadian dollar hovering near its 31 year highs, Canada’s employment report will be important as well.

The market is currently looking for stronger payroll growth, but the employment component of the September IVEY PMI report suggests otherwise. The IVEY dropped from 58.5 to 56, but the employment component fell to the lowest level since February. In the past, the IVEY has done a good job of forecasting Canadian employment, which is why tomorrow’s number could help trigger gains in USD/CAD. The Australian and New Zealand dollars also performed very well today. Both pairs are up strongly thanks to a jump in commodity prices and stronger Australian service sector PMI. The Australian economy is doing well, fueling speculation for another rate hike.

Written by Kathy Lien, Chief Currency Strategist for DailyFX.com