Today the U.S Unemployment Rate and Non-Farm Payroll will be released at 12:30 GMT.
The Unemployment Rate is predicted to rise to 14% from 4.4% last month while the US economy is anticipated to have lost 22 million jobs in April.
Will those historical figures generate extreme volatility or even flash crashes? Well no, as experts identify the situation as the “new normal”.
Indeed, the ADP Employment change last Wednesday already gave us a glimpse of the negative results expected today, with a catastrophic figure of 20.2 Million jobs lost.
However the Greenback continued to strengthen that day like nothing happened. Therefore the question that comes to mind is:
Are economic releases totally decorrelated from the currency they represent? In such case, does it make it still possible to trade fundamentally on a short term basis?
Well, we will have an answer later today and early next week on the effect of both major US news to all major currency pairs and safe havens such as Gold.
If you have any question, please feel free to contact our support team who will be happy to assist you.
TTCM Traders Capital Limited