The US Non-Farm Payroll; Core Driver For the US Dollar Gain or Lose.

In 2023, the outlook on US employment has shown an impressive wave of recovery and massive job growth in the 1^st quarter.  Job addition soared high across the hardest hit sectors such as Food industries, Travel and Hospitality, Agriculture, Banking and finance, and the educational sector.

In this second quarter, the US economy seems to remain resilient as economic data are pointing to massive job growth acceleration. Recent business surveys by Refinitiv DataStream show demand increases and rising job vacancies. The unemployment rate sits low at 3.5% and the advanced GDP report grew by 1.1% in the first quarter of 2023.

However, as mild recession fears scream, the US dollar continues to experience downside losses in response to the anticipated economic pain on the horizon. This paved the pathway for an explosive gain in the gold and silver commodity market space as traders hop for risk aversion.

 The Euro (EUR), Pound Sterling (GBP), New Zealand Dollar, and The Canadian Dollar, etc. are not left out of the market move as they are seen appreciating against the US dollar.

Another component driver of the US dollar loss is the US banking crisis. A report from forelive just relayed that regional banking fear is resurfacing as some are down by more than 15%.

On a daily time frame, the US dollar index has been underperforming in the second quarter of 2023.

A series of multi-days successive lows were seen with a downside move from the 105.84 index to the 101.23 index point as printed on the chart, at the time of writing this publication

The US dollar index chart

Nevertheless, Traders should brace themselves up for a period of high volatility as an increase in Non-farm Payroll will strengthen the USD while a decrease will weaken the USD.

In response to the news release, trade the financial market with the following trading instruments on the ACT Markets platform(actmarkets.com), as they are mostly affected by the data release; EURUSD, GBPUSD, XAUUSD, XAGUSD, USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD, US30, US100, USOIL, US Oil, Facebook, Amazon, Tesla, etc.

Time Schedule for the NFP release:

Date: Friday 5^th May 2023                 

 Time: 1:30 pm (GM + 1)