US NFP: how to interpret?
US non-farm payrolls data are released at 12:30 GMT.
A strong reading (above 165-170K) will increase the odds of the Fed’s tapering bond purchases. USD will retrace some of yesterday’s losses.
The reading between 170 and 120K will confuse market players. We’ll witness extreme volatility. The main moves will likely be at the stock market though.
A weak reading (below 120K) will provide an opportunity to join USD sellers.
Chart. US NFP