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February 24th - The overnight SHIBOR was 1.3620%, up 4.64 basis points; the 7-day SHIBOR was 1.5530%, up 22.97 basis points; the 14-day SHIBOR was 1.5770%, up 18.70 basis points; the 1-month SHIBOR was 1.5500%, unchanged from the previous trading day. The 3-month SHIBOR was 1.5780%, down 0.20 basis points.The main fuel oil futures contract surged 4.00% intraday, currently trading at 2978.00 yuan/ton.The SC crude oil futures contract surged 6.00% intraday, currently trading at 492.50 yuan per barrel.On February 24th, Wang Zhaohui, Deputy Chief Judge of the Second Civil Division of the Supreme Peoples Court, stated at a press conference that most cases in the capital market involve listed companies controlling shareholders or actual controllers, securities companies, accounting firms, and other intermediaries as defendants. In response, the Peoples Courts are actively promoting special representative litigation for debt disputes and supporting ordinary representative litigation. The Peoples Courts support investor protection institutions in filing ordinary representative lawsuits against numerous ST companies, *ST companies, and delisted companies, providing investors with more convenient and lower-cost remedies for protecting their rights.February 24th - According to the China State Railway Group Co., Ltd., during the Spring Festival holiday (from the 28th day of the twelfth lunar month to the 7th day of the first lunar month), railway passenger traffic remained high due to the overlapping of family visits, migrant workers, and tourists. The national railway system transported a total of 121 million passengers, averaging 13.41 million passengers per day, an increase of 11.5% compared to the same period last year. On February 23rd (the 7th day of the first lunar month), 18.733 million passengers were transported, setting a new historical record for single-day passenger volume during the Spring Festival travel season.

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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