A1 Trading Company

October 6, 2022

Warning: NFP is Nearly Here

Michael J. Donoghue
Warning: NFP is Nearly Here

Tomorrow morning at 8:30 am Eastern Time, the United States Bureau of Labor Statistics will release three key monthly labor data reports: Average Hourly Earnings (month-over-month), Non-Farm Employment Change/Payrolls (NFP), and the new US unemployment rate. These three measures of nationwide labor market activity, and NFP in particular, have tremendous market-moving potential as fundamental catalysts. This likelihood of volatility across financial markets warrants a warning: NFP is nearly here.

Currently, markets are forecasting an 0.3% increase in average hourly earnings in September (which equates to higher costs for businesses and more money for employees), 248,000 new non-farm payrolls added to the US economy, and an unemployment rate of 3.7%, unchanged from August. If the real numbers exceed these expectations on Friday, this will likely be bullish news for the US Dollar, since the Fed will have further incentive to raise rates to cool the economy. However, if the real numbers fail to meet these expectations, this may be interpreted as bearish for USD, since it could prompt the Fed to consider pumping the brakes on further interest rate hikes. If Wednesday's NFP estimates are any indication, a hotter-than-expected US labor market seems plausible, which would benefit USD bulls.

Two Potential Pairs to Buy

The following pairs are rated favorably by the A1 EdgeFinder as potential buying opportunities for those aiming to go long on USD. They are listed below with their respective ratings and signals, along with their EdgeFinder analysis and current trends on a 1-day timeframe.

1) USD/JPY (Earns a 4, or ‘Buy’ Signal)

Warning: NFP is Nearly Here
Warning: NFP is Nearly Here

2) USD/CHF (Earns a 4, or ‘Buy’ Signal)

Warning: NFP is Nearly Here
Warning: NFP is Nearly Here

Two Potential Pairs to Sell

The following pairs are rated favorably by the A1 EdgeFinder as potential selling opportunities for those who are bullish on USD. They are listed below with their respective ratings and signals, along with their EdgeFinder analysis and current trends on a 1-day timeframe.

1) EUR/USD (Earns a -7, or ‘Strong Sell’ Signal)

Warning: NFP is Nearly Here
Warning: NFP is Nearly Here

2) GBP/USD (Earns a -5, or ‘Sell’ Signal)

Warning: NFP is Nearly Here
Warning: NFP is Nearly Here

A1 Edgefinder

All-In-One Fundamental Dashboard!
Simplify your fundamental analysis with our all-in-one fundamental dashboard! 
Discount code: READER

Learn more

Dollar Remains Strong

Indices recover from Friday's lows as the dollar index hovers at break even. The mounting tensions in Israel-Iran escalated market worries, but financial earnings have kicked off to a good start. EdgeFinder Analysis Retail Sales came in higher than expected which is a good sign for the economy. It's also strong for the USD as […]

Read More
Hotter CPI Shakes Markets

Yesterday's CPI numbers in the US caused considerable doubt in the expectations of a June rate cut. This morning's PPI came in lower than expected. But, it might not be enough to convince investors of a summer rate cut. EdgeFinder Analysis EURUSD is a -8 now on the EdgeFinder indicating dollar strength after the higher […]

Read More
Key Inflation Data Weighs on Investor Sentiment

Wednesday's inflation report in the US will be very pivotal in how USD-related assets will react for the next month. Higher CPI has investors worried of the Fed who still looks to cut rates at some point this year, but the inflationary trend could determine when these rate cuts come. EdgeFinder Analysis We have been […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonemenumenu-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram