Massive trading week for US fundamentals

If you are trader that is worth his/her measure then you would know how important it is to keep note of the economic calendar for possible fundamental opportunities that may occur. If you are not careful and you are only fully focused on technical trading, you are bound to receive unexpected volatility with the market that completely disobey your trading rules and does not make sense to you. In this discussion is meant to serve as a warning post for the possible fundamental events that are bound to cause massive market volatility. We will be focusing on the USD as it the most traded currency in the markets and a stable feature of the Major currency pairs, hence its fundamental events will be the most far reaching.

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Economic events for the week

Monday

There are no economic events for the USD this Monday. Prepare for ranging markets as they prepare for the trade week ahead..

Tuesday

Jerome Powell, the Chairman of the Federal Reserve, is set to give a testimony in front of the Joint Economic Committee on the overall state of the economy, the rational behind the FEDs decisions and the plans for future policy decisions. Investors will be interested in the future outlook of the FED as it will influence the decision of important factors such as the interest rate decision and fiscal policy. The testimony is going to start at 10am New York time.

Wednesday

On this day we have 4 economic events on the same day with 3 taking place right around the same time, we have the Nonfarm employment rate change first, the continued testimony of Powell , the Jolts Jobs Openings for January and the report for Crude Oil inventory. Explaining all of these would take a whole different article just note that at 10am New York time there is bound to be lots of volatility as the last three economic events are announced within 30 minutes of each other.

Thursday

The United States jobless claims will be announced on Thursday 8:30 am New York time. This event shows us how many people filled for unemployment insurance which indicates rising or falling employment rates. This will give further clues into the state of the economy and possible fiscal decisions to result from the speculated economic environment.

Friday

On Friday we will be receiving the unemployment rate for the US as well as further data concerning Non Farm Payrolls for the month of February. Both these announcements are to be made simultaneously at 8:30 am New York time so be aware of the massive volatility that will come to the markets right around the announcement.

How to prepare as a trader

It is very clear that this week we are bound to have quite the roller coaster experience as for 4 out of 5 days of the week we have important economic announcements which are all known to bring about market volatility. This week I encourage you to practice risk management and try avoid placing trades right before the start of an economic event. Wait for the market to show which direction the fundamentals want to take the market and follow accordingly, otherwise your will find yourself in losing trades quickly and panicking to move your stop loss.