FX traders look to the major central banks for the next big move

Taking a look at 1-week implied volatility for major dollar pairs, we can see a bit of a spike now as traders are putting plenty of attention to the major central bank policy decisions next week. The Fed will kick things off before the BOE and ECB chime in and then we even have US non-farm payrolls Nonfarm Payrolls Nonfarm Payrolls (NFP) is the single biggest monthly economic news indicator released out of the United States, usually on the first Friday of every month. Reported by the US Bureau of Labor Statistics, the NFP measures the increase or decrease in the number of people employed during the previous month, except for those working in the farming and agriculture industry.The NFP can also be referred to as an Employment Change, and is the most anticipated monthly report. As it's released at the begin Nonfarm Payrolls (NFP) is the single biggest monthly economic news indicator released out of the United States, usually on the first Friday of every month. Reported by the US Bureau of Labor Statistics, the NFP measures the increase or decrease in the number of people employed during the previous month, except for those working in the farming and agriculture industry.The NFP can also be referred to as an Employment Change, and is the most anticipated monthly report. As it's released at the begin Read this Term to round it all off on Friday.

It is little wonder why markets are looking fairly apprehensive in trading this week, as traders are pinning next week as a big one to influence volatility and offer them something to work with in the aftermath.