EUR/USD 1.18715
0.040%
Gold 3694.40
0.124%
Oil 64.219
0.078%
USD/JPY 146.339
-0.074%
GBP/USD 1.36536
0.065%
GBP/JPY 199.811
-0.002%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On September 17, the U.S. government officially launched the process of reviewing and possibly renewing the 2020 North American Free Trade Agreement on Tuesday, soliciting opinions from the public, businesses, and unions on the agreement. The request from the Office of the United States Trade Representative solicits opinions on a wide range of issues related to the USMCA, including compliance, issues affecting the investment environment, and strategies to "enhance North Americas economic security and competitiveness." Comments must be submitted within 45 days of the notice being published in the Federal Register, and the Office of the United States Trade Representative will hold a public hearing on the agreement on November 17. According to the law, public comment and hearings are required before the formal joint review of the USMCA begins. The joint review is scheduled to start on July 1, 2026.The United States has launched a review of the USMCA and is soliciting opinions.According to Japans Asahi Shimbun: Japan will not recognize the State of Palestine at the United Nations General Assembly.On September 17, Chery Automobile announced on the Hong Kong Stock Exchange that it plans to issue 297,397,000 H shares (subject to the exercise of the over-allotment option) for its Hong Kong listing, with a price range of HK$27.75 to HK$30.75. The price is expected to be completed on September 23. The shares are expected to begin trading on the Hong Kong Stock Exchange on September 25.September 17th news, Google (GOOG.O) has been trying to catch up with OpenAI in the field of generative artificial intelligence, and now it seems to have finally made progress among users. This week, Googles Gemini application took the first place in the Apple App Store free application rankings, surpassing ChatGPT, which led the generative artificial intelligence craze nearly three years ago. Googles Gemini AI model has recently launched some updates, attracting new users. Last month, Google released an upgraded version of its "Flash" AI model, 2.5 Flash Image, which added an image editing feature called Nano Banana. Josh Woodward, head of the Gemini application, said that this product brought 13 million new users to the Gemini application in just four days, bringing its total number of users since its launch to 23 million.

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