EUR/USD 1.15772
-0.012%
Gold 4346.82
-1.579%
Oil 84.044
-0.055%
USD/JPY 159.607
0.092%
GBP/USD 1.35350
-0.055%
GBP/JPY 216.033
0.046%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The UAE Ministry of Defense stated that the two ballistic missiles launched by Iran targeted maritime traffic.U.S. Special Envoy for Syria Tom Barak: Turkey did not receive prior warning of the Israeli airstrikes and could have reasonably prepared for them.U.S. Special Envoy for Syria Tom Barak: This underscores the need to establish a de-escalation mechanism involving Israel, Syria, and Turkey, and we are actively working towards this goal.U.S. Special Envoy for Syria Tom Barak: Israels attack on the Syrian airbase reflects the perception that Türkiye may increase its presence in Syria in the near future.On August 19th, Pennsylvania Governor Josh Shapiro issued an executive order imposing strict restrictions on data center construction. The order requires projects to obtain local government approval before applying for state-level permits, and mandates compliance with water conservation standards, bearing the additional electricity costs, and resolving their own power supply issues. Shapiro stated that a large number of data center projects have flooded Pennsylvania, with some developers neglecting the interests of local communities. With the rapid growth of AI investment, many US states have begun to restrict data center expansion to address power, environmental, and community pressures. New York State has pushed for a suspension of environmental permits for large data centers for up to one year; Texas Governor Greg Abbott, a long-time supporter of data center development, has also suspended approvals for some new projects and launched a review process.

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