Like every first Friday of the month, the NFP is out tomorrow.
So what is it?
The NFP is the most crucial economic data of the month.
The report shows the change in the number of employed people during the previous month, excluding the farming industry.
Jobs creation is closely watched by the U.S Federal Bank, the same bank that determines the monetary policy of the biggest economy in the world.
That is why this data come with such great effects on Forex and Stock markets and making it the most important trading day of every month.
If the amount of new jobs created will break the forecast of 160k, there is a big chance we’ll see the USD going up against other major currencies, especially vs the EUR.
There is another important thing for tomorrow, a good report could give the U.S. Federal Bank a boost of confidence and we’ll see a higher chance of interest rate hike.
If this will be the case, the USD’s direction can be set for all of 2016, and the direction will be up.
