Here are the key factors to keep in mind today for US Dollar trades:

• US NFP Report: The first Friday of each trading month, as always, the US will release its awaited non-farm payroll report. Economists expected roughly the same for May as they did in April. The US economy is predicted to add 227,000 jobs in May or 4,000 more than the 223,000 job addition reported in April. The unemployment rate is expected to remain unchanged at 5.4%. Private payrolls are expected to increase by 220,000 jobs which would be 7,000 more than then 213,000 reported in April. On Wednesday the ADP report showed 201,000 jobs were added in the private sector in May, 1,000 more than the 200,000 expected and well above April’s 169,000 jobs. The ADP report is often off the mark and forex traders need to be careful with their assessment of this report. It is also very important to account for the two-month net revisions to March and April and add or subtract that number form the headline figure of May. A much better reading on the health of the US labor market is often found in the household survey which showed 192,000 jobs were added. The average hourly workweek is expected to remain unchanged at 34.5 hours. Average hourly earnings are expected to rise by 0.2% monthly and post an annualized increase of 2.2%. Forex traders can compare this to the 0.1% increase reported in April where the annualized increase also came in at 2.2%. The labor force participation rate likely remained unchanged at 62.8% which indicates a very weak labor market.
• US Consumer Credit: Consumer credit in the US is expected to decrease to $16.000 billion in April which can be compared to the $$20.523 billion reported in March. The slowdown reflects a decrease in consumer spending which was reported in several key economic reports over the past few months.

Here is the key factor to keep in mind today for Canadian Dollar trades:

• Canadian Employment Report: The Canadian economy is expected to show that 10,000 jobs were added in May. This would mark a reversal from the 19,700 job losses reported in April. The unemployment rate is expected to remain unchanged at 6.8% and so is the labor force participation rate which currently stands at 65.8%. 10,000 full-time positions are expected to be lost while 40,000 part-time positions were added. Forex traders can compare this to April were 46,900 full-time positions were added and 66,500 part-time positons were lost. Labor productivity is expected to contract by 0.2% in the first-quarter which can be compared to the 0.1% contraction reported in the previous one.

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