When you’re trading the markets, knowing what’s moving prices is just as important as knowing how to trade. This week, traders are turning their attention to key economic activity indicators—specifically, Jobless Claims and PMI (Purchasing Managers’ Index) reports.
These two events will tell us whether the U.S. economy is still going strong or showing signs of weakness. The results can influence everything from market sentiment to Federal Reserve decisions—and yes, your own trading setups.
So, what should you expect, and how should you prepare?
Let’s break it down in simple terms.
What Are the Key Reports to Watch This Week?
1. Initial Jobless Claims – Thursday
This report tells us how many people filed for unemployment for the first time in the past week. When the number is low, it means the job market is healthy. When it’s high, it can be a red flag that companies are cutting costs—and people are losing jobs.
Why it matters:
- A strong job market supports consumer spending, which drives economic growth.
- Weak job numbers could pressure the Fed to pause or lower interest rates.
- It often causes short-term volatility in the forex, stock, and bond markets.
Watch how USD pairs move immediately after the data release. Jobless Claims often cause sharp intraday spikes.
2. PMI Reports: Manufacturing & Services
PMI, or Purchasing Managers’ Index, is one of the best early indicators of economic health. There are two reports:
- Manufacturing PMI: Measures factory activity
- Services PMI: Measures service industries like finance, retail, and healthcare
What to look at:
- New Orders: Are customers buying more or less?
- Employment: Are businesses hiring or cutting staff?
- Prices Paid: Are costs going up, suggesting inflation?
These details can help traders see if inflation is returning, cooling, or remaining sticky.
Why These Reports Matter More Than Ever in 2025
We’re in a tricky economic environment.
- Inflation has been hard to tame.
- Interest rates are high, but may be cut soon.
- There’s a credit downgrade and worries of market instability.
So, everyone’s watching to see if the real economy can keep growing—or if trouble is on the way.
If PMI and Jobless Claims show weakness, it may confirm fears that tight policy is starting to hurt businesses and workers.
If the reports show resilience, it could mean the economy still has fuel—great for bullish traders!
Market Reactions to Watch
Forex
- USD: A strong PMI or low jobless number supports a stronger dollar.
- EUR/USD & GBP/USD: Watch for downside pressure if U.S. data beats expectations.
- JPY pairs: May show more volatility, especially if risk sentiment shifts.
Stocks
- Stocks may fall if strong data means the Fed will keep rates high longer.
- But if data shows stable growth with low inflation, it can be bullish.
Commodities
- Gold: Sensitive to Fed expectations. Weak job data may lift gold as rate cuts become more likely.
- Oil: Services PMI can influence oil due to links with consumer and business demand.
Simple Example: How a Vestrado User Can Trade the News
Let’s say you’re watching EUR/USD on Thursday.
- Before the Jobless Claims report, the pair is in a tight range.
- The data comes out weaker than expected – jobless claims go up.
- Traders believe the Fed may cut rates sooner.
- The USD weakens, and EUR/USD moves higher.
- With proper confirmation from your chart and strategy, you enter a long position on EUR/USD.
Reminder: Always follow your risk management plan. Use stop-loss and take-profit levels wisely.
How Vestrado Makes Trading News Easier for You
At Vestrado, we understand that economic data can be confusing and overwhelming, especially for beginner traders.
That’s why we offer:
- Economic Calendar – See what’s coming and when it drops
- Trading Alerts – Get notified when key news hits the market
- Easy-to-Use Demo Account – Practice your news trading without real risk
- Educational Guides – Learn what PMI, CPI, or NFP means for your trades
- Local Support – We speak your language and support your trading journey
Pro Tips for Trading High-Impact News
1. Check the Forecast vs. Actual
Compare the expected number with the actual result. Markets often react not to the number itself, but to how it compares to the forecast.
2. Wait for the First Reaction
Avoid jumping in right when the news hits. Let the market show its initial move first, then look for a setup.
3. Use Small Lot Sizes
News can cause fast, unpredictable moves. Lower your position size to reduce risk.
4. Focus on Major Pairs
Stick with pairs like EUR/USD, GBP/USD, USD/JPY for higher liquidity during news time.
What If You’re Still Not Sure How to Trade the News?
That’s where Vestrado steps in.
We’re more than just a platform—we’re your partner in the markets. We know that many of our users are new to trading, and we want you to succeed by:
- Explaining things in simple words
- Offering tools that are easy to use
- Giving you local support when you need help
You don’t have to trade alone. With Vestrado, you can build your skills while staying safe.
Final Thoughts: Don’t Let the News Catch You Off Guard
This week’s Jobless Claims and PMI reports could shake the markets—or offer new trading opportunities.
If you’re a trader, this is your chance to get ahead. And if you’re still learning, that’s okay too. Every market event is a chance to grow, as long as you have the right tools and the right broker behind you.
Ready to Practice Trading the News?
Open your free Vestrado demo account today and try trading around real market events—without risking your money.
Join Vestrado now—because smart trading starts with knowing the news.
