Non-Farm Payroll is Published by the US Department of Labour and it gauges the United States labor market health which is a major economic indicator that impacts the US dollar, equities, gold, and many other financial instruments.
The NFP data is generally released on the first Friday of each month at 1:30 pm (GMT+ 1). It usually causes large movements in the financial market.
Last month, the Non-Farm Payroll release drove the US Doller Index to the downside by some percentage point. This was triggered by a modest selling pressure as a result of the job data released that missed the market expectation by a wide margin. Commodities such as gold (XAUUSD) and Silver XAGUSD) gained momentum with slight upside gains. In the same order, EURUSD and GBPUSD were not left out of the ride as they edged higher in a decent bull run to 1.15852 and 1.36579 price levels respectively. In the report, the US job market rose by 194,000 in September, less than the market expectation of 500,000.
Generally, the United States economy in the third quarter grew at the rate of 2%, the slowest recovery ever in the pandemic phase. This was stunted by supply chain disruption and materials shortages. Also, the Covid-19 Delta variant played a big role in the job shortfall and slow recovery.
However, despite the third quarter (Q3) slump, economic analysts speculate that the economy will bounce back in this Fourth Quarter(Q4) and the growth rate will stretch further into 2022. Currently, the economy has leaped out of the Q3 low with explosive growth driven by many structural changes.
In response to that, the United States Department of Labour is in partnership with organizations services which include apprenticeship opportunities, hiring events, digital marching of skills and experiences, employment mentorship, and networking to expand the job market and training services. Also, incremental funding worth $1.6 million was awarded to the Connecticut Department of Labour and other states to aid job creation and workforce training services.
Its unemployment rate stood at 4.8% with speculation of further decline in the near term. The gross domestic product increased 7.8% and the purchasing Manager’s Index up 60.8% indicating an Industry expansion.
Currently, the public sentiment holds firm ahead of the release as the US stocks such as US30(Dow Jones), US100(NASDAQ), US500(S&P 500), US Shares such as Tesla, Apple, Facebook, etc. are holding firm in massive gains and they can be traded on the ACT brokers trading platform (https://actmarkets.com/) with the best spread and trade execution.
Regardless, traders should brace themselves up for a period of high volatility as the Non-Farm Payroll report often have a great impact on the FOREX market. An increase in the Job report will usually strengthen the US Dollar (USD), while its decrease will usually weaken the US Dollar (USD).
Traders should always be aware that volatile markets provide great opportunities for making profits, as the increase in volatility can cause market swings for traders to capitalize on.
The currency pairs that include the US dollar, US Futures, US indexes, US Commodities, and Shares are mostly affected by the data release. They include: EURUSD, GBPUSD, XAUUSD, USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD, US100, FTSE, US Oil, Facebook, Amazon, Tesla, etc.
Time Schedule for next NFP release:
Date: Friday, 5th November, 2021.
Time: 1:30 pm (GM + 1)
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