The upcoming week will be busy for forex traders due to the numerous important economic events that are planned. One of the forex reports that traders will be following is the Consumer Price Index (CPI) for the Swiss Franc, which is due out on April 3, 2023, at 07:30 UK time. The Swiss inflation rate, a key indicator in this report, may have a significant impact on the value of the Swiss Franc.
Another report to pay attention to is the ISM Manufacturing PMI for the US Dollar, which will be released on April 3, 2023, at 5:00 UK time. This report, which gauges the level of activity in the manufacturing sector, provides traders with information about the market’s overall health.
ADP will release the Non-Farm Employment Change on the US Dollar, which will provide a preliminary assessment of the state of the US labor market, on April 5, 2023, at 13:15 UK time. The Non-Farm Employment Change, Average Hourly Earnings m/m, and Unemployment Rate on the US Dollar reports, which are due out on April 7, 2023, at 13:30 UK time, will give traders a more comprehensive understanding of the US labor market. In general, traders should closely monitor these forex reports to inform their trading strategies because they offer essential information about the state of various economies.
The following information on the forex reports topic is for educational purposes only and should not be considered financial advice. Below we will take a closer look at these reports and what you can expect from them:
1. (USD/CHF) Consumer Price Index (CPI) m/m
Last week, we’ve noticed the USDCHF testing a significant support level, while other swiss franc pairs acted bullish. This is suggesting a potential trend reversal for USDCHF.Â
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This Monday, the USDCHF pair is expected to gain volatility based on the CPI forex reports. The previous report showed an increase of 0.7%, while traders are expecting an increase of only 0.4%, which is lower than the previous month. If data shows higher than expected, we can expect to see USDCHF breaking its support level, but chances are unlikely.
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Knowing that the Swiss National Bank has increased the interest rate by 50 bps and further hikes are expected, even with a 0.4% increase still might not be enough to break the support level.
2. (USD Index) ISM Manufacturing PMI
The ISM Manufacturing PMI (Purchasing Managers’ Index) forex report is a significant economic gauge of activity in the US manufacturing sector. The index is regarded as an accurate indicator of future economic growth and is based on a nationwide poll of purchasing managers.
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The ISM Manufacturing PMI’s accuracy varies, just like it does with every other economic indicator. Despite the index’s reputation as a reliable gauge of industrial activity, there are numerous potential issues that could undermine its accuracy. For instance, statistical noise and sampling error may influence the results when buying managers make up a minor fraction of the survey’s sample. Moreover, factors like seasonal variations and changes in the demographic profile of the survey participants may have an effect.
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The ISM Manufacturing PMI is seen as one of the most trustworthy and closely watched indices of economic activity in the US despite these possible drawbacks. The index is periodically released and has the potential to significantly affect the financial markets. The index is used by traders and analysts to gain additional insight into the state of the manufacturing industry and the overall economy.
3. (AUD/USD) RBA Rate Statement / Cash Rate
The Reserve Bank of Australia (RBA) will release its rate announcement and cash rate on April 4 at 5:30 AM British time. The RBA rate decision has a substantial impact on the Australian dollar (AUD) and, as a result, the AUD/USD currency pair, making it a crucial event for the forex market.
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If the RBA decides to increase the cash rate, the AUD might gain since more foreign investment will flow in. But, if the cash rate is decreased, it can be a sign of economic deterioration and fewer investment returns, which could cause the Australian dollar to lose value.
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Fundamental research predicts that the market will react favorably to an increase in the cash rate, which could cause the AUD/USD pair to increase by 50 to 100 pip. On the other hand, the market may react unfavorably if the cash rate is reduced, and the AUD/USD pair may decline by 50 to 100 pips as a result.
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Technical analysis suggests that a bullish trend might begin for the AUD/USD pair if the cash rate rises and a negative trend could begin if the cash rate falls. As always, traders must keep a close eye on any changes and adjust their trading strategies as appropriate.
4. (EUR/USD) ADP Non-Farm Employment Change
It is a significant move in the forex market because the ADP Non-Farm Employment Change forex report is recognized as a top predictor of the monthly US Non-Farm Payrolls report. The ADP report indicates that there has been a shift in the number of people working in the private sector, which excludes agriculture. Because it provides details about the US labor market and has the ability to influence the Federal Reserve’s monetary policy decisions, traders closely monitor this report.
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If the ADP Non-Farm Employment Change data shows an increase, the US economy may be seen as being in better shape, which could lead to a rise in demand for US dollars. Technical analysis predicts a decline of up to 50 pip in the EURUSD pair as a result. The EURUSD pair may rise by up to 50 pips if the report shows a decline, which could be taken as a negative sign for the US economy and lead to increased demand for the euro.
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It is important to remember that other factors, such geopolitical developments and global economic trends, could have an immediate impact on the movement of the EURUSD pair. Trading during the time leading up to the release of the ADP Non-Farm Employment Change report should be done with caution and consideration of these considerations.
5. (GBP/USD) Non-Farm Employment Change
The BLS Non-Farm Employment Change forex report is one of the economic data that the FX market looks forward to the most. The report, which is released on the first Friday of each month, provides details about the US labor market and acts as a gauge for the health of the country’s overall economy. Traders are keenly anticipating the upcoming release on April 7, 2023, looking for any indications of a robust or weak labor market.
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If the data reveals an increase in non-farm employment, this might be seen as good news for the US economy and boost the value of the US dollar. Yet, a loss in non-farm employment may be seen unfavorably and cause the value of the US dollar to fall.
According to fundamental analysis, market participants predict that non-farm employment will increase by about 200,000 positions. Technical analysis, however, suggests that the GBP/USD currency pair may respond differently depending on the actual results and other market factors. Investors should be prepared to adjust their assets in light of the report’s conclusions and other market developments.
