Weekly Forex Fundamentals

August 29, 2017
In this coming week it is a very very interesting because this trading week there is full of opportunity, there are a few important things to look at and it is the release of several unemployment numbers and also other important numbers, such as the inflation rate in Germany and China's PMI. However the most important event of the week, is the announcement of US Nonfarm Payrolls and unemployment rate.

We have the Unemployment Rate in Japan on Tuesday, 29 August
The unemployment rate gives us an indication of how many people failed to find employment in the past three months, as compared to the overall labour force.
Lower unemployment is beneficial for the economic of Japan. The previous unemployment rate is 2.8%, with the current forecast remaining the same at 2.8% (*).

German GfK Consumer Confidence on Tuesday, 29 August
This is an index gathered in a given survey of about 2000 consumers which helps to evaluate the economic conditions in Germany in regards to their personal finance, consumption, and overall economy.
The confidence is an important factor in the overall economy, which is a leading indicator in consumer spending. With the previous figure at 10.8, the current forecast promises 10.8 (*).

Inflation Rate in Germany on Wednesday, 30 August
The inflation rate will be announced in Germany, This gives us an indication whether the price of goods and services has changed. This inflation rate is used by central banks to assess whether they are getting closer to the official target of 2%.
The inflation rate is a key component in making decisions on the interest rate. The Interest rate is a very important thing to determine the countries economic condition. The previous inflation rate is 1.7%, and the current forecast is for 1.8% (*).

ADP Employment Change in the U.S. on Wednesday, 30 August
The ADP gives us the figure based on the changes in the number of people who found employment in the previous month. However this number does not include the farming industry or the government employees.
ADP provides services in payroll to US corporations, and they are able to analyse around 400,000 customers. The previous ADP employment change is 178k, with the current forecast standing at 183k (*).

NBS Manufacturing PMI in China on Thursday, 31 August
The PMI shows the Purchasing Managers' Index, which is an index based on the surveyed purchasing managers of the manufacturing industry.
The level that is above 50.0 indicates industry expansion, whereas a level below 50.0, contraction. The previous figure is 51.4 (*).

Unemployment Rates in the Eurozone and Germany on Thursday, 31 August
The unemployment rate shows the amount of people that are unemployed in terms of the total labour force.
The unemployment rate is a general indication of overall economy. The previous unemployment rate in Germany is 5.7%, with the current forecast standing at the same point, 5.7% (). The previous unemployment rate in the Eurozone is 9.1%, and the current forecast is 9.1% () as well.

Finally one of the most important and exciting news where most new traders screw up on

US Nonfarm Payrolls, Average Hourly Earnings, and Unemployment Rate on Friday, 1 September
The Nonfarm Payroll (NFP) data shows the overall changes in the employment for the previous month, this excludes the farming industry, while average hourly earnings represent the change in the price that businesses pay for the labours, however this will exclude the farming industry. The unemployment rate shows how many people are unemployed in regard to the total labour force.
The Federal Open Market Committee and traders usually pay a lot of attention to the core data. The actual report coming better than the forecast is great for the currency. This is possibly the most traded news release and where most screw ups happen. For traders that have no experience in trading this, just stay away, because it can move really fast, however it can move against you really fast! The key test for the Fed is to ensure that inflation is improving and full employment is maintained. The previous NFP figure is 209k, and the current forecast, 184k (). The previous average hourly earnings rate is 0.3%, and the current forecast, 0.2 (). The previous unemployment rate is 4.3%, with the forecast also being 4.3% (*).