The Fundamental FOREX Blog

Tomorrow, on Friday, 02-05-10 at 8:30 AM ET, the Bureau of Labor Statistics will release the monthly reports of the USD Non-Farm Employment Change and Unemployment Rate.

These will be released along with 4 other economic reports:

USD Change in Manufacturing Payrolls
USD Average Hourly Earnings (MoM)
USD Average Hourly Earnings (YoY)
USD Average Weekly Hours

These additional reports should not greatly affect the currency market.

I  did a “follow up” post for last months release, click here for a review.

Here is how the reports are set up for this month:

USD Non-Farm Employment Change – Stats

Previous = -85K

Forecast = 10K

USD Unemployment Rate – Stats

Previous = 10.0%

Forecast = 10.0%

It appears that the economists believe that the Employment Change is going to improve and that the Employment Rate is going to remain at the same level as last month.

It is difficult for me to say which report will have the greatest impact on the market, some say that the Employment Change is the report that has the most impact.

I am going to watch both very carefully, hopefully they will come out in the same direction – Employment Change will improve and Unemployment Rate will go down, or the reverse.

Here is how I am set up for tomorrow:

USD-6-30AM-02-05-10
Looking for a 125K difference
Actual > Forecast = Good for USD
USD Non-Farm Employment Change
——actual———-forecast———-previous
________________10K________-85K
out at  -115K or lower – SELL GBP/USD
out at 135K or higher – BUY GBP/USD
USD Unemployment Rate
_______________10.0%  ________10.0%
Actual < Forecast = Good for USD
0.2 diff. watch for conflict

I did post a “follow up” of these reports, click here to see what happened.

The next release of these reports is scheduled for Friday, 03-05-10 at 8:30 AM ET, I will probably post a “preview” a day or two prior.

Stay tuned!