On Friday, June 3rd, the U.S. jobs report came out, and the results were far worse than anyone had foreseen. Only 38,000 jobs were created over the month of May, making it one of the worst months that the United States has seen in the last decade. This isn’t necessarily a bad thing, though, and before you start taking out longer term trades or even investments, it’s important to try and get the full story behind the numbers. Whether you are trading binary options, stocks, or anything else, fundamental data like this is an easy way to get a general framework for how you should interpret the technical information that you use to make your trading decisions upon.

However, it’s not a definite thing that the U.S. economy is in trouble. Making trades under this assumption could be a very poor decision, especially if there’s no data or price action to support the idea. As of right now, all the concrete information that we have is that there is potential for an issue. A poor employment report is one thing, but before you start taking out put binary options on everything U.S. related, there are a few other things that you should look at. First, know that there are a few reports that come out this coming week, such as the revolving credit report and April’s consumer credit report. If these show any signs of growth, then there is plenty of hope that the economy is in better shape than what was originally indicated by May’s employment data. There are also reports coming out that will examine job turnover in more depth, as well as wholesale inventory data. These reports seldom receive much attention, but these tiny bits of fundamental information will be the things that verify whether or not the low job number data is actually a bad thing or not.

Another thing to keep in mind is the fact that many experts believed that the U.S. Federal Reserve was set to raise interest rates once again during the month of June. However, if the economy is worse than it was thought to be, this is something that Chair Janet Yellen is likely to hold off on for the time being. This is certainly far from definite, though, and the decision that is made later in the month is likely to hinge upon the data that comes out over the coming week. Even if you are unconcerned about what the major U.S. indices and stocks are going to do, this decision will have a profound impact upon what happens with the U.S. dollar, and that will impact almost every Forex trader and binary options trader out there. Perhaps for this reason alone, paying attention to fundamental data can give your trading a big jump start.

Does that mean you should hold off on all of your trades until the information is uncovered? Of course not. You might want to cut down on the size or frequency of your trades in the meantime, but you certainly don’t need to. There are tons of other drivers out there that move prices, and many traders rely solely upon the tiny technical bits of information that they uncover in their charts. In fact, most day traders fit into this category. Still, as you formulate each trading decision that you make, having a good idea of general trends and market sentiment is a good idea for you as it gives you a more complete picture of what is happening in the economy. Just be sure not to spend too much time on this information as that can actually detract from your ability to make good trades.