Nonfarm Payroll: Prepare for Friday, July 5 announcement

Each month, U.S. nonfarm payroll numbers drive one of the biggest trading days in Forex.

Volatility continues to create daily opportunities for traders in the markets. Several recent factors suggest the July 5 nonfarm payroll release will be much the same.

Job figures from last month show growth has slowed. But the U.S. Department of Labor has reported that there are nearly a million more job openings than available workers. Concerns of underemployment and low wages remain, yet pay is on the rise.

Improvements should be seen in Friday’s release, MTI analyst William Bridges said Tuesday.

“The market is likely to reverse flow as we are improving in this category,” Bridges said. “But there is also a slowing down in several sectors. That’s likely because of the trade war and the tensions that Brexit is causing globally.”

Today’s employment report by payroll processor ADP should price in Friday’s moves, he said.

Movement of hundreds of pips is expected on USD pairs. That builds on momentum established by outside factors, Bridges said.

Holiday weeks sometimes delay U.S. nonfarm payroll figures being released by the Department of Labor. But, this month’s release takes place on the typical first Friday of the month despite Thursday’s Independence Day holiday.

Expect numerous trading opportunities from Friday’s release. Bridges says four U.S. dollar pairs in particular hold promise.

And the movement could continue to create winning trades for up to a week beyond ADP’s release today, he said.