If you want a clue on whether the USA will raise rates or not this month then look no farther than today’s NFP release out of the USA. The NFP figure will offer traders valuable insight into the health of the US economy. The Non-Farm Employment Change figure is the earliest and most important news release out of the USA ahead of the upcoming interest rate vote, widely watched by decision makers and traders alike. Whatever the outcome we are sure to see strong moves in the USD, equities and commodities alike. A better than expected print will see the USD strengthen across the board and vice versa should it fall short of expectations.
From across the pond we see the GBP under fire due to political risks, today’s economic release will give traders a chance to reposition themselves. The Construction PMI indicates the construction sectors robustness, and is regarded as a leading indicator of economic health. Traders watch the figure closely in a bid to determine how optimistic the construction sector is and the likelihood of a more active economy in the future. A better than expected release will see the GBP strengthen while a worse than expected release will see the GBP weaken across the board.
With the Canadian dollar under fire due to the recent weakness in crude oil, todays Trade Balance figure out of the country, expected at 0.0B, is likely to have an impact. The figure represents the difference in value between imported and exported goods during the reported month. A positive number indicates that more goods were exported than imported and the larger the number the better for the Canadian dollar. A better than expected release will see the CAD rise while a lower than expected figure will see the CAD weaken.