Trading USD this coming week? Be sure to look out for the economic events.

The dollar has been gaining strength in leaps and bounds recently as the asset is being bought up by investors to serve as a safe haven from these unprecedented economic times. This recent surge in the value of the dollar may have caused additional attention to the currency, and so today we will doing a forecast for next week to showcase the upcoming economic events which are likely to cause massive volatility in the market so you may plan your trading accordingly.

Why is the USD surging in strength？

The USD is one of the most traded currencies in the world as all the major currency pairs feature the dollar. This massive dependency on the dollar means that any significant event that is likely to affect the dollar will have a noticeable effect on the market. The recent economic downturn that a major continent like Europe is experiencing has inspired investors to pull their capital from the pound and invest in the dollar.

This is all fine and well but we have to remember that we are entering a new month. This means that we are about to encounter a number of economic events as this is the point at which governments and financial institutions give out information that spells out the current state of the economy.

These economic events are known to cause volatility at the time of announcement so it is best to weary of these events as they can prove quite beneficial to you. If you intend on trading the dollar in the markets you are going to need a broker with small fixed spreads. To find such a broker I recommend you use WikiFx, This all-in-one app is connected to all the regulatory boards worldwide so you will be able to compare regulated brokers side by side. They can also help you recover funds that have been unjustly taken from you so you can beat scamming brokers for their own game. This is a highly valuable tool that is sure to aid you with whatever broker query you may have so download it and save yourself a lot of time and money.

Economic events to look out for

1) ISM Manufacturing PMI: 3 October.

This report summarizes the purchasing decisions of the manufacturing business CEO. It is a powerful indicator that reflects the current purchasing decisions of major businesses and corporations which support the economy. Readings above 50% show that the countrys businesses are expanding. Reading below 50% shows the opposite.

2) ISM Non-Manufacturing PMI (SEP): 5 October.

This report is similar to the first event. The only difference is that this refers to non-manufacturing businesses. This report still has major implications for the country and is bound to cause volatility in the market, regardless of the result.

3) Non-Farm Payrolls: 7 October.

This event summarizes the total amount paid out to nonfarming jobs. This event usually showcases the kind of spending power that the people of America currently possess. This is one of the most volatility-causing events so it is highly recommended that you practice careful risk management.

4) Unemployment rate: 7 October. This report showcases the percentage of people who are currently unemployed. Drastic changes in this rate are bound to reflect a strengthening or weakening economy

It is best to keep a look out for these events as these may spell out important points in the market where there may be major reversals. It is highly recommended that you practice good risk management when entering these markets as the volatility also means an additional risk for the trader.