NFP; Will The US Job Market Report Drive Dollar Gain? Gold Gaining Massively As Risk Sentiment Holds

The Non-farm payroll (NFP) is a monthly measure of United States labor market health, released every first Friday of the month by the Bureau of Labor Statistics. It is a key economic indicator for the United States economy and among the most market-moving data points for the US Dollar, US equities, Treasuries and Gold

From the market outlook, the US economy maintained its growth pattern in the third and fourth quarters of 2022 till February 2023. The growth was sustained despite the rising interest rate holding high at 5.0% and targeted at slowing down the economy.

However, last month’s overview showed a bit of an economic contraction as the unemployment rate rose from 3.4% to 3.6%. This pushed the US dollar index massively to the downside from a 105.3 level to 101.1 multi-days low at the time of writing this article. As risk speculation intensified further, it triggered gains in the metal commodity market space as traders hopped for safe haven. Gold gained by over 17,642 pips followed by silver, and these commodity asset classes are expected to gain further.

The forex instruments were not left out of the profit zone as the EUR/USD and GBP/USD gained by 351.3 and 501.5pips respectively at the time of writing this publication. Further gains in the above pairs are likely in the near term.

Based on the above metrics, it is an indication that the US job market is gradually slowing down and the dollar downside move will possibly project lower.

Last week, the US GDP final(q/q) data reported a 2.6% print, a slight decline from the previous 2.7%.

Nevertheless, the job market still holds strong comparatively at 3.6%, and the rate of hiring remains solid. The degree of unemployment rate stays close to half a century low, and the Consumer confidence and spending rate is still holding high.

Nevertheless, Traders should brace themselves up for a period of high volatility as an increase in Non-farm Payroll will strengthen the USD while a decrease will weaken the USD.

In response to the news release, trade the financial market with the following trading instruments on the ACT Markets platform(actmarkets.com), as they are mostly affected by the data release; EURUSD, GBPUSD, XAUUSD, XAGUSD, USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD, US30, US100, USOIL, US Oil, Facebook, Amazon, Tesla, etc.

Time Schedule for next NFP release:

Date: Friday 7th April, 2023

 Time: 1:30 pm (GM + 1)