The Fundamental FOREX Blog

Tomorrow, on Friday, 09-03-10 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 trade the EUR/USD last month – 2 loses – see the “follow up”

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 = -131K

Forecast = -101K

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 Unemployment Rate is going to increase over 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 a reversal of both.

Here is how I am set up for tomorrow:

USD-8-30AM-ET-09-03-10
Looking for a 100K difference
Actual > Forecast = Good for USD
USD Non-Farm Employment Change
——actual——–forecast——–previous
_______________-101K_______-131K
out at  -201K or lower – SELL USD/JPY
out at -001K 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, 10-08-10 at 8:30 AM ET, I will probably post a “preview” a day or two prior.

Stay tuned!