EUR/USD 1.17593
-0.236%
Gold 4787.57
-0.686%
Oil 86.374
0.950%
USD/JPY 159.160
0.213%
GBP/USD 1.35050
-0.209%
GBP/JPY 214.950
0.020%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Russian Defense Ministry: Russian troops have captured Khrishinny in the Donetsk region of Ukraine.Russian Defense Ministry: Russian troops have captured Viterinny in the Kharkiv region of Ukraine.The Kremlin: This demonstrates Europes ambitions in militarization and nuclear weaponization.On April 21, according to RIA Novosti, Russian Armed Forces Chief of the General Staff Gerasimov stated at the command post of the Southern Army Group that Russia had completely taken control of the Luhansk region. Gerasimov said that Russian troops are currently advancing in all directions. In February and March, Ukrainian armed forces attempted to halt the Russian offensive but lost 3,000 soldiers and over 160 pieces of equipment. Ukraine has not yet responded to this claim. The Russian Ministry of Defense announced on April 1 that it had completely taken control of the Luhansk region, but this was subsequently denied by Ukraine.On April 21, the State Council issued an opinion on promoting the expansion and quality improvement of the service industry. The opinion mentions steadily advancing the opening up and cooperation of the service industry. It further expands pilot programs for opening up in areas such as value-added telecommunications, biotechnology, and wholly foreign-owned hospitals. It improves the negative list management system for cross-border service trade. It enhances service capabilities such as data export compliance assessment and security certification. It strengthens service trade cooperation with key countries and regions, and coordinates the construction of major opening-up and cooperation platforms such as service trade innovation and development demonstration zones. It promotes the export of cultural and tourism services and encourages the expansion of inbound consumption.

What impact does NFP have on the forex market?

LEO

Oct 25, 2021 13:27

Nonfarm payroll employment is a compiled name for goods, construction and manufacturing companies in the US. It does not include farm workers, private household employees, or non-profit organization employees.

It is an influential statistic and economic indicator released monthly by the United States Department of Labor as part of a comprehensive report on the state of the labor market.

The Bureau of Labor Statistics releases data on the first Friday of the month, at 8:30 a.m. Eastern Time. 

This data is analyzed closely because of its importance in identifying the rate of economic growth and inflation.

Nonfarm payroll is included in the monthly Employment Situation or informally the jobs report and affects the US dollar, the Foreign exchange market, the bond market, and the stock market.

The markets react very quickly and most of the time in a very volatile fashion around the time the NFP data is released. The short-term market moves indicate that there is a very strong correlation between the NFP data and the strength of the US dollar. Historical price movement data shows a small negative correlation between the NFP data and the US dollar Index.

The figure released is the change in nonfarm payrolls (NFP), compared to the previous month, and is usually between +10,000 and +250,000 during non-recessional times. The NFP number is meant to represent the number of jobs added or lost in the economy over the last month, not including jobs relating to the farming industry.

As with other indicators, the difference between the actual non-farm data and expected figures will determine the overall impact on the market. If the non-farm payroll is expanding, this is a good indication that the economy is growing, and vice versa. However, if increases in non-farm payroll occur at a fast rate, this may lead to an increase in inflation. In forex, the level of actual non-farm payroll compared to payroll estimates is taken very seriously. If the actual data comes in lower than economists' estimates, forex traders will usually sell U.S. dollars in anticipation of a weakening currency. The opposite is true when the data is higher than economists' expectations.

Suggestion