7 Jun 2013
US NFP next: Impact on the USD
FXstreet.com (Córdoba) - The US Labor Department will release the nonfarm payrolls report and unemployment rates at 12:30GMT. Consensus is calling for a job creation of 170K in May, slightly above the 165K printed in April.
Investors will be paying close attention, as well as Fed officials, given that the QE program (size and timing) depends in great deal on the employment figures.
In this regard, Valeria Bednarik, chief analyst at FXstreet.com comments that as the unemployment rate is largely related to QE tapering, a decrease should made market players rethink their positions and go again behind the dollar. "7.5% is the lowest level since February 2009, so a reading well below this number is what dollars bulls will be looking for, along with steady job creation in the 160/200K area".
On the other hand, disappointing data will again guarantee ad eternum QE and keep greenback under selling pressure, says Bednarik.
Investors will be paying close attention, as well as Fed officials, given that the QE program (size and timing) depends in great deal on the employment figures.
In this regard, Valeria Bednarik, chief analyst at FXstreet.com comments that as the unemployment rate is largely related to QE tapering, a decrease should made market players rethink their positions and go again behind the dollar. "7.5% is the lowest level since February 2009, so a reading well below this number is what dollars bulls will be looking for, along with steady job creation in the 160/200K area".
On the other hand, disappointing data will again guarantee ad eternum QE and keep greenback under selling pressure, says Bednarik.