Ready for NFP data?

So here we are. No… it’s not christmas. It’s non farm payrolls’ day. While not every month seems to be important, there are occasions when employment data turns into a huge deal.
The Federal Open Market Committee will meet on March 14-15 for its usual monetary policy meeting, with nearly 90% of market players expecting a rate hike.
Expectations increased notably after Fed Chair Janet Yellen opted for a hawkish rhetoric by saying that a rate adjustment could be due “relatively soon” if the economy continued to perform at current levels. And this is why the NFP data is relevant.
Employment and inflation are both key indicators followed by the Federal Reserve in order to better define the course of monetary policy.
On Wednesday, ADP has reported a 298,000 jobs build in February, the highest growth in almost three years and well above expectations of only 187,000 jobs. As a result, Wall Street analysts have raising their predictions for the NFP.
So far, analysts point to 190,000 private sector jobs build in February, below the previous 227,000 added in the previous month. The unemployment rate is expected to tick lower to 4.7 percent from a prior 4.8 percent. Official data will be available at 13:30 GMT.

Better than expected
Most analysts are going with this scenario. ADP is usually predicting official trends and if data confirms such great figures, rate hike expectations could move to nearly 100 percent. If so, we could see a jump in US dollar against other currencies, and significant pressure on safe-havens such as gold and other precious metals.

Worse than expected