EUR/USD 1.17225
0.020%
Gold 4688.79
0.151%
Oil 94.696
-0.237%
USD/JPY 159.391
-0.016%
GBP/USD 1.35354
0.017%
GBP/JPY 215.746
0.004%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The vice president of Venezuelas state-owned oil company, PDVSA, said that Venezuelan crude oil exports are expected to increase to 1.06 million barrels per day and fuel exports to 134,000 barrels per day by the end of the year.Venezuelan Deputy Minister: The restoration of natural gas infrastructure must be accelerated.According to Politico: The U.S. Democratic Party plans to hold a new round of voting on Tuesday night local time on a bill to limit the presidents war powers.On April 28, the Congressional Budget Office (CBO) stated that recent tariff policy adjustments in the United States could increase the federal budget deficit by $1.1 trillion over ten years, but the exact figure is currently uncertain. CBO Director Swagel stated that the Supreme Courts ruling that Trumps use of emergency economic powers to impose tariffs was invalid will lead to a $2 trillion increase in the fiscal deficit over ten years; while other trade measures Trump has taken to date to compensate for this loss have added a total of $800 billion to $900 billion in revenue. Swagel stated, "Because the Supreme Court removed some tariffs, and the government reinstated some, the fiscal deficit over ten years will be about $1.1 trillion higher. The government has considerable power to impose new tariffs and adjust them, so its difficult to determine the exact deficit amount until the entire process is complete."On April 28th, German Chancellor Merz stated on the 27th that the United States lacks a strategic exit plan regarding the war with Iran. Speaking at an event at a high school in North Rhine-Westphalia, Germany, Merz said he couldnt see what kind of strategic exit plan the US would choose. He noted that Iran had been very sophisticated in negotiations, or rather, very sophisticated in refusing to negotiate, "letting the Americans go to Islamabad and leave empty-handed." Merz pointed out that once a war is started, "a way to exit must be found," and the US clearly lacks a strategy in this regard. He cited the USs actions in the wars in Afghanistan and Iraq as examples.

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