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According to AXIOS: Israeli officials revealed that Trump has spoken with Israeli Prime Minister Netanyahu and discussed the Iran issue.On May 17, the Qatari Ministry of Foreign Affairs strongly condemned the drone attacks against the United Arab Emirates, including the attack near the Barakah nuclear power plant in the Al-Ahfra district of Abu Dhabi. The ministry stated that the attacks were a “blatant violation of international law” and a “serious threat to regional security and stability.” Such “reckless attacks” targeting critical infrastructure and civilian sites have crossed a red line, and the ministry urged all parties to work to prevent further escalation. Qatar also called for de-escalation, emphasizing the need to avoid the consequences of “unprovoked attacks” and to restore stability at the regional and international levels. The ministry reiterated Doha’s full solidarity with the UAE and its support for its measures to protect sovereignty, security, and vital facilities.On May 17, the Indian Embassy in Russia reported that a large-scale drone attack in the Moscow region resulted in the death of one Indian citizen and injuries to three others. The attack occurred on May 17 in the Moscow region of Russia, where a large-scale drone attack by Ukraine occurred. It is reported that approximately 130 Ukrainian drones were shot down in the past 24 hours as they approached Moscow. This is the largest drone attack to hit the region this year.The China Earthquake Networks Center officially determined that a magnitude 3.0 earthquake occurred in Liunan District, Liuzhou City, Guangxi Province at 22:54 on May 17, with a focal depth of 10 kilometers.According to the UAEs state news agency, the UAE minister spoke with the head of the International Atomic Energy Agency after drone attacks on a nuclear power plant in the Gulf state.

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.

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