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According to TASS, Russian military intelligence chief Kostiukov said that the United States needs the Russia-Ukraine negotiations more than Russia does.Qatar says Iran launched 14 missiles and 4 drones on Thursday.Qatar claims it intercepted four drones launched from Iran.On March 5th, neurotechnology company Science Corp. raised $230 million from investors to commercialize its implantable device for the blind and develop more advanced brain-computer interface devices. Sources familiar with the matter revealed that this round of financing brings Sciences valuation (including the new funds) to $1.25 billion. This makes it the second most valuable brain-computer interface company globally, after Elon Musks startup Neuralink. The company is also one of the best-funded companies, having raised a total of $489 million to date. Science is developing a retinal implant called PRIMA, a chip implanted at the back of the eye that helps blind people regain sight with the aid of special glasses that project images into the eye. A study published last October in the *New England Journal of Medicine* showed that the system improved vision in 26 of 32 patients with advanced age-related macular degeneration. In recent years, investors have poured more than $2 billion into the top six brain-computer interface companies in the United States. Currently, the U.S. Food and Drug Administration (FDA) has not approved any devices for long-term commercial use, so these devices are only available in clinical trials.March 5th - TD Securities strategists noted in a report that unless Fridays US non-farm payroll report is significantly weak, it is unlikely to have a major impact on the US dollar. They stated that US economic data may take a backseat, with market focus shifting to the Middle East conflict and its potential impact on the Federal Reserves ability to cut interest rates this year. The strategists said, "You need to see a much worse report, and an increase in the unemployment rate, for the market to refocus on this weeks non-farm payroll data and reverse recent price movements." They believe that given the USs energy independence and the reduced prospect of interest rate cuts, the dollar should remain strong if oil prices remain high.

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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