What to expect from the Nonfarm payrolls today?

Today at 15:30 is the release of data over Nonfarm payrolls in the USA. Forecasts are for 205,000 new jobs created in March. High volatility is expected, which may give better places for entries and you should use limit orders for it, as is also important to refine stop losses a bit more remote and volumes are slightly reduced compared to standard.

Key in Friday's March employment report will be average hourly wages, expected to rise 0.3 percent and the labor participation rate, which has been edging up since October. Unemployment is expected to hold steady at 4.9 percent.

While the consensus is for 205,000 new jobs, there are a lot of rumors that data will be below expectations, as in the last 7 8 years first data release for March were below expectations with a pretty big difference. Another prerequisite many analysts to forecast below consensus data are sluggish economy, low productivity during the quarter and weak profit margins.

If released data is better than consensus expectations today that can support the dollar against cross currencies. Positive data also might force Fed for a recent increase in interest rates. This would have a negative impact on indexes and it is possible that we see short-term corrective moves downward. Stronger dollar will adversely affect the prices of precious metals and we might see declines in gold.

Alternatively worse than expected data will have a negative impact on the dollar, which would cause investors to seek safe haven in gold and the yen.