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Forex pairs in this Article » AUD/USD, GBP/USD, AUD/USD, EUR/USD, USDOLLAR
Talking Points:

• The August NFP release can generate significant volatility as the market weighs Taper fallout

• 'Surprises' in the payrolls figures have ranged between extremes of 50,000 and 180,000 jobs

• The greatest market impact would be derived from jobs data tapping into Taper fears and risk trends

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In the past months, we have seen Treasury yields soar and carry trade collapse in response to the timetable for the Fed's Taper, but the S&P 500 weathered the storm. That may change with the upcoming NFPs release. The market seems virtually certain of a September reduction in QE3 purchases that would in turn change the dynamic of external support for the capital markets. The implications are clear for a market that has been built on borrowed money, yet investors are still trying to draw as much return as possible - flouting the risk. Yet, the deleveraging threat is very real. In today's Forex Strategy Video, we discuss the FX trades that are positioned to take advantage of a heavy reaction to the employment data.

Find out the forecasts and release numbers for the NFPs and other key event risk at the DailyFX Economic Calendar.

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