U.S. NFP Employment Change & Unemployment Rate
The most awaited news will be out in some time as U.S. NFP job data (1330 GMT/1900 IST) and unemployment rate will give further directions to the U.S. dollar. This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts. Unemployment rate is generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country’s monetary policy.
After that U.S. will release ISM Services PMI data at 1500 GMT/2030 IST. It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. The Above 50.0 indicates industry expansion, below indicates contraction. It is derived via a survey of about 300 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
Let’s see how Gold has reacted during the previous data release:
- Gold remains volatile ahead of U.S. NFP job data and hoves around $1,770 mark.
- Today pair made intraday high at $1,776 and low at $1,766 mark.
- A day chart and H1 chart with triple EMA suggests down trend for the time being.
- A sustained close above $1,776 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,762 will check further supports.
Take a look and do trade wisely!