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February 26 (KCNA) – The 9th Congress of the Workers Party of Korea concluded in Pyongyang on February 25. In his summary report, General Secretary Kim Jong Un stated regarding North Korea-US relations that the future of bilateral relations depends entirely on the US attitude. Kim Jong Un said that in the Asia-Pacific region, the expansion and transgressive military activities of the US-led aggressor bloc seriously threaten the security of the Korean Peninsula and the region. North Korea will, as always, be fully prepared for confrontation with the US and will maintain its hardline policy towards the US. Kim Jong Un said that if the US withdraws its hostile policy towards North Korea, North Korea has no reason not to maintain friendly relations with the US. If the US does not change its consistent approach towards North Korea and insists on confrontation to the end, North Korea will also resolutely respond. "The future of North Korea-US relations depends entirely on the US attitude."On February 26, US Vice President Vance stated that the White House is closely monitoring the incident on February 25 where a US-registered speedboat was "shot" near Cuba. He expressed hope that this was not a "serious" incident. Florida Attorney General James Uthmeyer posted on social media that he had instructed state prosecutors to cooperate with relevant parties to investigate the incident. Earlier that day, the Cuban Ministry of the Interior reported that border guards discovered a speedboat registered in Florida illegally entering Cuban territorial waters near Villa Clara province. The speedboat opened fire, and Cuban forces returned fire, resulting in four deaths and six injuries to the foreign attackers.Multiple explosions were heard in Kyiv, the capital of Ukraine.The dollar/yen pair fell 0.4% to 155.765 after comments were made by Bank of Japan policy board member Hajime Takada.February 26 – Ukrainian President Volodymyr Zelenskyy signed a presidential decree on February 25 announcing Ukraines withdrawal from the 1995 agreement on the establishment of a joint air defense system for the member states of the Commonwealth of Independent States (CIS). According to another presidential decree published on the website of the Ukrainian Presidential Office, Ukraine will also withdraw from 30 international treaties reached within the CIS framework, including the 1991 agreement on the CIS Coordination Body. According to the decree, the Ukrainian Ministry of Foreign Affairs will notify the depositary parties of the relevant international treaties according to procedure.

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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