EUR/USD 1.17944
-0.007%
Gold 4831.46
-0.210%
Oil 87.690
-1.579%
USD/JPY 158.802
0.016%
GBP/USD 1.35714
0.041%
GBP/JPY 215.521
0.067%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Japans core machinery orders rose 24.7% year-on-year in February, below the expected 8.5% and the previous months 13.70%.Japans core machinery orders rose 13.6% month-on-month in February, compared with an expected decline of 1.1% and a previous decline of 5.5%.On April 15th, Futures News reported that Chicago Board of Trade (CBOT) soybean futures closed lower on Tuesday, with the benchmark contract down 0.4%, mainly reflecting weaker international crude oil prices and the record-breaking pace of US soybean planting for this time of year. US President Trump stated that negotiations with Iran might resume later this week. This led to a significant drop in international crude oil futures, with Brent crude futures falling 4.6%. The plunge in crude oil futures put pressure on the soybean and soybean product markets. The US Department of Agricultures weekly crop progress report released Monday showed that as of April 12th, soybean planting was 6% complete, 4 percentage points higher than the five-year average, setting a record for the fastest pace for this time of year. Analysts pointed out that the rapid progress of soybean planting has strengthened market expectations of ample new soybean supply, putting additional pressure on soybean prices. Furthermore, South America also brought bearish news. Brazils National Supply Company (Conab) released its latest forecast, raising its 2025/26 Brazilian soybean production estimate from 177.85 million tons last month to a record 179.15 million tons. Soybean exports were also revised upward by about 1 million tons to 115.4 million tons.1. All three major U.S. stock indexes closed higher. The Dow Jones Industrial Average rose 0.66% to 48,535.99 points, the S&P 500 rose 1.18% to 6,967.38 points, and the Nasdaq Composite rose 1.96% to 23,639.08 points, marking its tenth consecutive day of gains. Amazon and Nvidia led the gains, rising nearly 4%. The Wind U.S. Tech Big Seven Index rose 2.83%, Facebook rose more than 4%, and Google rose more than 3%. The Nasdaq China Golden Dragon Index rose 2.35%, iQiyi rose more than 11%, and JD.com rose nearly 8%. 2. European stock indices all closed higher. The German DAX rose 1.27% to 24,044.22 points, the French CAC40 rose 1.12% to 8,327.86 points, and the UK FTSE 100 rose 0.25% to 10,609.06 points. Although the US and Iran did not reach a final agreement, the ceasefire proposal significantly eased market concerns about a potential blockade of the Strait of Hormuz and reduced the risk of disruptions to European energy supplies. 3. The WTI crude oil futures contract closed down 7.08% at $92.07 per barrel; the Brent crude oil futures contract fell 4.05% to $95.34 per barrel. 4. International precious metals futures generally closed higher. COMEX gold futures rose 2.04% to $4,864.50 per ounce, and COMEX silver futures rose 5.23% to $79.62 per ounce.Japans Reuters Tankan non-manufacturing business sentiment index for April was 31, down from 25 in the previous month.

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