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NFP Today Is Vital for FOMC’s Decision Next Week

NFP Today Is Vital for FOMC’s Decision Next Week

NFP Today Is Vital for FOMC’s Decision Next Week

Markets are poised ahead of U.S. Non-farm Payrolls and what might come out of it but what makes it vital today is the FOMC meeting next week and its coloration with NFP data today. A positive NFP with strong input would increase the odds of Fed March hike and a negative NFP will decrease next week hike chances. But the main question is, how far will U.S. Fed bare strong U.S. Index levels ?

If NFP is positive today, we expect U.S. Index to break above 102.24 yesterday’s high, with target at 103. A Fed rate hike will also peek U.S. Index levels also above 104 level with additional bullish waves in the coming weeks as a reasonable market consequences.

If NFP is negative today, U.S. Index will shift to bearish forces with target at 100.65 and extension of further selloffs and wash towards 99.90 level. Chances of March hike will fade gradually but markets are placing 85% odds for a hike next week and anything opposite to that might create a further congestion and U.S. Index will suffocate at 97 level.

The main key in order to know how U.S. Fed will play along despite NFP result today, are the levels or the range that the U.S. Fed are seeking for U.S. Index. Analysts from Wells Fargo, expected a gain in non-farm payroll of 210K in February, above the market consensus of 190K. Wednesday’s ADP NFP scored strongly 298K which increases NFP odds today being positive.

Previous comments of FOMC’s members, supported by Yellen and Trump speeches boosted U.S. Index to enter the 100 to 102 level at which we think is the target that US Fed are looking for. A positive NFP today will increase U.S. Index levels and unchanged rates by FOMC will make a correction back to current U.S. index levels which supports the odds of an unchanged Fed rates next week although the odds are 85% for an increase.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

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