As the market participants expect the labor market improved for the fourth consecutive month in January, it is likely that the dollar to continue to offset losses incurred by the beginning of the week, and it is estimated that summon echo green momentum in the future, in light of the acceleration of the recovery process in the wider economy in the world.
Speculation based on the results of data: American jobs are available outside the agricultural sector
Why is this important event:
As the market participants expect the labor market improved for the fourth consecutive month in January, it is likely that the dollar to continue to offset losses incurred by the beginning of the week, and it is estimated that summon echo green momentum in the future, in light of the acceleration of the recovery process in the wider economy in the world. In turn, it is likely that the Fed's economic assessment review during the next rate decision meeting scheduled in March, and we look forward to undermine the central bank estimates strengthen the monetary incentives, against the backdrop of the growing prospects for growth and inflation both.
What is expected?
Time of release: 02/04/201113: 30 T.. GMT, 8:30 GMT New York
A direct impact on: EUR / USD
Expected: 145K
Previous: 103K
F projections Daily. X. Ranging between 70K and 150K
Is this event will raise the movements in the markets (scenarios):
Expected to increase the available jobs outside the agricultural sector in the United States by 145 thousand in January, in the wake of its expansion by 103 A in the previous month, while the estimated growth rate of unemployment to 9.5% from 9.4% during the same period, against the backdrop of the return of discouraged workers into the labor force . However, since Fed Chairman Ben Bernanke is likely to "take the normalization of the labor market full four or five years," it is possible to record the jobs available outside the agricultural sector of the new reading disappointing due to the current recession camp on the real economy, has deliver twice the pace of growth of the labor market weight on the exchange rate at the time of the Central Bank continues to cast doubt on the possibility of achieving sustained recovery.
Positive reading
ADP employment report showed the increased functionality added to the private sector increased by 187 thousand in January, exceeding expectations to rise by 140 thousand, while jobs grew and the manufacturing sector according to a faster pace during the same period, with the ISM index advanced to 61.7 from 58.9 in December. With the improvement of private sector activities, it is possible to observe the expanded more than expected in the recruitment process, and is estimated to pay the higher functions EUR / USD to fall back to the level of Fibonacci 50.0% of the low exchange rates from the peak of trades in 2009 and down to the bottom of the trades in 2010 adjacent to the existing 1.3500, against the backdrop of the pair's correction progress that has arisen from the month of January.
Negative reading
However, and companies face a rise in energy prices and tightening in credit conditions, it is likely that companies will rein in its desire to expand its workforce, may see the Fed that there is scope for the expansion of its monetary policy further this year, in an effort to promote sustainable recovery. Based on the foregoing, it is likely to result in registration of the jobs available outside the agricultural sector to read disappointing to face the dollar Qualifiers sharp, may be able to pair the euro / dollars of compensation Altrajh severe hit on Thursday, against the backdrop of deteriorating prospects for growth and inflation both.
How To Trade This Event
Enhance the prospects for increasing jobs for the fourth consecutive time inevitably bullish outlook for the greenback, is likely to pave the way market reactions following the publication of the report for the purchase of U.S. dollar against the backdrop of the recovery process gathers momentum. Therefore, if the jobs rose by 145 thousand or more in January, we will need to pair according to the red candle in the graph 5 minutes immediately after release, so make sure of the direction of prices before the opening of the sale of new two decades of EUR / USD. Once these conditions are met, we will set the stop at the summit or recently achieved a reasonable distance, taking into account the fluctuations, to be able to determine these levels, the first goal. The second objective will be based on estimates, and we will move the stop on the second when the first trade reaches its goal to maintain our gains.
On the other hand, is likely to limit the companies from the jobs they have in light of maintaining the central bank cautious outlook for the economy, estimated to pay the fragility of the recovery process of the labor market the Fed to expand its monetary policy further in the coming months, in an effort to alleviate the the brunt of downside risks to growth and inflation. As a result, if the increased availability of posts outside the agricultural sector less than 100 thousand compared with the previous month, we will follow in Amlja_ra EUR / Dolaralastratejip the same that have been pursued for sites selling book, but in the opposite direction.
What to Look For Before Release
Can traders who have the ability to reach deep into the market through the platform provided by Active trader FXCM used to evaluate the effectiveness of economic data that were released to shed some light on the bias direction of the market. It is likely to shape the increasing volume ahead of release to follow any movement, while an imbalance in available liquidity on the demand orders for Products in the market will tell us the direction in which the major institutions such as the probability Release
Speculation based on the results of the data
Posted by ahmed essam on 12:39 PM

