Gold Chart U.S. Unemployment Rate

Unemployment Rate: Impact on Indian Stock Market

Unemployment Rate is the percentage of people in the workforce who want to work but do not have a job.

The formula for calculating Unemployment Rate = 

No. of Unemployed People  / Total work Force.

A higher than expected reading should be taken as positive or bullish for the respective country’s economy, while a lower than expected reading should be taken as negative or bearish.

Example:

The Unemployment rate of India is higher than the expected or previous, is positive or bullish for India stock market and currency. Indian currency (INR) will gain against other currency like USD, EUR, and GBP, etc. Or vice versa.

 

Indicators That Impact India Stock Market

 

USA Unemployment Rate: 

In the USA Bureau of Labour Statistics (BLS) releases unemployment data each month.

Effect of US Unemployment rate on Commodity Market (Gold)

Gold Chart U.S. Unemployment Rate

In the above chart, you can clearly see that US unemployment data on 4Th May 2018 is positive as it is better than forecast.

US Unemployment Data for 4Th May 2018 is 3.9%, which is better than forecast (4%) and previously (4.1%). As per data unemployment rate was decreased from the last month and this is positive or bullish for the USD.

As we know that Commodity market (Gold, Silver, etc.) react inversely to the USD. So, in the above chart, you can see that just after a data release it formed a big negative candle.

Effect of US Unemployment rate on Commodity Market (Gold)

Here data is lower than forecast and just after the release of data Gold formed a massive green candle.

In the above chart, you can clearly see that US unemployment data on 6th April 2018 is negative as it is lower than forecast.

US Unemployment Data for 6th April 2018 is 4.1%, which is lower than forecast (4%) and same as previous (4.1%). As per data unemployment rate was increased from the last month and this is negative or bearish for the USD.

As we know that Commodity market (Gold, Silver, etc.) react inversely to the USD. So, in the above chart, you can see that just after a data release Gold formed a big positive candle.

Note: The impact of the US Unemployment Rate on Commodity is for a very short period of time. As shown in the above chart.

 

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