NFP Comes in Strong But Markets Yet to Make Up Mind

Colin First
NFP

The key data point in the first week of any month has always been the NFP data. Sometimes the data is anticipated a lot but turns out to be a damp squib while at other times, no one is much bothered about the data as the market knows what that data will lead to anyway. This week, the data has been well anticipated mainly due to the fact that the data in the previous month was weak. Not only the NFP data but almost all the data from the US over the past month or so has been weak due to which the dollar has been on the backfoot.

Dollar Gets a Boost

The ADP data yesterday pointed to a weak NFP data today and that had led to a lot of fear among the dollar bulls but they would have been relieved today to see the NFP come in at a much stronger than expected value of 222K against the expected value of 178K. This has finally seemed to reverse the trend of bad data and that in itself would be a victory for the dollar bulls. The reaction so far, in the markets has been choppy with many dollar based pairs not sure on which direction they should be taking.

EURUSD M15

Though the data is dollar positive, the other major currencies have also managed to post some strong data over the last few weeks which has led many of them, including the ECB, BOE and the BOC to be hawkish in their economic outlook and seriously look to hike rates in the near future. This has helped the respective currencies to become stronger on their own and hence the effect of the stronger dollar and stronger data is somewhat diminished as far as the other currencies are concerned and thats why we are seeing choppy action in the markets nowadays and this is likely to last in the short term with a bias on dollar strength.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US