A1 Trading Company

Ticker tape by TradingView

November 29, 2021

The Week Ahead: NFP, GDP & FOMC

Bart Kurek

Let's look at the news event's we've got lining up this week...

(USD) FOMC Member Speeches

Many Fed policymakers are scheduled to give testimonies throughout the week to hint at any possible upcoming monetary policy changes which could move the USD around. The Fed Chair Powell is set to speak in webinars in front of the Senate Banking Committee and the House Financial Services Committee. Other important members to look out for is Fed's Williams, Bowman and Clarida.

(CAD) GDP

A Gross Domestic Product (GDP) report is a measure of the size and health of a country's economy over a period of time. The figure sums up the country's performance in terms of trade, consumer activity, government spending and investment during a particular period.

Analysts are expecting to see no change in growth following last months 0.4% expansion. Weaker job growth and rising price levels likely kept consumer spending in check, even as businesses slowly resume normal operations.

(AUD) GDP

Australia is scheduled to print its Q3 GDP report midweek and analysts are expecting to see a softer pace of growth compared to the earlier 0.7% expansion. Australia did go into lockdown amongst its major cities in the past quarter, likely limiting business and consumer activity once again. A weaker than expected reading will likely mean more downside for the AUD while a stronger reading could encourage tightening expectations and boost the currency.

OPEC-JMMC Meeting

Every month, the Organisation of Petroleum Exporting Countries (OPEC) and the Joint Ministerial Monitoring Committee (JMMC) have a meeting to discuss the outlook of Oil and its performance. OPEC aims to control the price of oil by adjusting supply volumes. If its members want to increase the price of oil, they can revise their production quotas downwards to limit supply.

The cartel is under pressure to increase its production targets, given how major economies like the US and China are taking it upon themselves to release crude oil reserves into the global market. The OPEC is worried that this might spur a global glut, so they may refrain from boosting supply for now. However, since they did miss their output goal earlier, this could mean they may be inclined to make up for it.

(USD) NFP

The Non-Farm Payroll (NFP) or also known as Non-Farm Employment Change data, released by the Bureau of Labor Statistics, is a key economic indicator for the US economy which represents the number of jobs added to US citizens, excluding farm, government, private household and non-profit organisation employees.

NFP data always causes a commotion in FX as it is an important indicator for the Federal Reserve Bank. When unemployment is high, policymakers tend to have an expansionary (stimulatory, with low-interest rates) monetary policy with the goal to increase economic output and increase employment.

Following October's report of an increase of 531k, analysts are expecting to see another similar November report with an increase of 528k jobs. This is expected to bring the unemployment rate down from 4.6% to 4.5%.

A stronger than expected report will boost the USD currency however, a weaker than expected result could slash hopes of a Fed interest rate hike sometime in the middle of 2022. Leading indicators like the ADP Non-Farm Employment Change and the ISM Manufacturing PMI will likely also bring in extra volatility.

A1 Edgefinder

#1 Market Scanner Tool
Take 10% off using code "READER"
GET ACCESS NOW
Want to See Our Trades?

Join The VIP Community!

Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
Listen to More Episodes
Why the New FOMC Decision Matters

Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]

Read More
Shocking CAD Inflation News

Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]

Read More
2 Paths for Aussie Bears

At 9:30 pm Eastern Time tonight, the Reserve Bank of Australia (RBA) will be publishing their latest round of monetary policy meeting minutes. While there is a chance that their intentions could come across as more hawkish than expected, they currently have little reason to be. Despite relatively low unemployment at 3.5%, steady GDP growth, […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram