The Fundamental FOREX Blog

Tomorrow, on Friday, 08-06-10 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 1 other economic report:

USD Average Hourly Earnings (MoM)

This additional report 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 = -125K

Forecast = -59K

USD Unemployment Rate – Stats

Previous = 9.5%

Forecast = 9.6%

It appears that the economists believe that the Employment Change is going to improve and that the Employment Rate is going to increase over last month – setting up a conflict.

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 a reversal of both.

I did not enter a trade last report!!

Here is how I am set up for tomorrow:

USD-8-30AM-ET-08-06-10
Looking for a 100K difference
Actual > Forecast = Good for USD
USD Non-Farm Employment Change
——actual——–forecast——–previous
_______________-75K_______-125K
out at  -206K or lower – SELL USD/JPY
out at -006K or higher – BUY USD/JPY
USD Unemployment Rate
_______________9.6%  ______9.5%
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, 09-03-10 at 8:30 AM ET, I will probably post a “preview” a day or two prior.

Stay tuned!