Donald Trump’s self-styled “Liberation Day” has captured imaginations among those in capital markets who prepare for key economic data and large market moves in the coming week. Unlike every other time since, this day—marked by Trump’s long-expected tariffs—is what has a lot of people, especially in the bubble that is retail trading, worried. Just a few months ago, we saw that an incredible 81.4% of retail investor accounts lose money trading contracts for difference (CFDs) with the world’s largest provider. This shows the profound inherent danger in leveraged short strategies, particularly during extreme markets.
On Friday, the United States Bureau of Labor Statistics is set to release the highly anticipated jobs data at 12:30 GMT. Traders are hungry for this data. They’re waiting for an appearance by Federal Reserve Chair Jerome Powell and looking for some new marching orders that could affect market conditions. As the economic landscape continues to change, these indicators may offer key glimpses into the future of our job market and overall economic vitality.
In terms of the market Recently, the US Dollar has been on a short uptick. This increase follows a major sell-off led by fearmongering about a Chinese trade war and recession. This recovery has shifted the landscape dramatically. Accordingly, the EUR/USD currency pair is now broadening its correction towards 1.0950 in the European session on Friday. This confusing landscape is the result of a lot of moving parts, such as the complicated effects of Trump’s tariffs and their long-term effects on overall economic stability.
Gold prices have come under pressure as they collide with new supply on Friday. The downside potential for the precious metal seems to be limited in the opposite climate, analysts say. Trump’s tariffs-inspired risk-off mood should do a modestly better job providing a tailwind for gold, propping it up in times of uncertainty. Bets on Federal Reserve rate cuts continue to drag the USD lower. This trend engenders a much more positive XAU/USD outlook.
The consensus for the March Nonfarm Payrolls (NFP) report is an increase of 135,000 jobs. That’s down from the 151,000 jobs added in February. Internationally, economists and traders are buzzing about the expected slowdown. They are working to understand its implications for monetary policy and longrun economic growth. That future data should be key to spotting trends that may be relevant to near term trading strategies as well as longer-term economic predictions.
As traders continue to process these changes, it is imperative they stay alert and vigilant. The views and opinions expressed in this article are those of the authors. They do not in any way represent the views of FXStreet or our sponsors. Note that the author, nor FXStreet, is not a registered investment advisor. Accordingly, you must not read anything here as investment advice.