Non-Farm Payrolls Non-Farm Employment Report is a Fact Both reports issued by US Bureau of Labor Statistics Is a measure of the change in the number of people employed during the previous month, excluding industry of the agricultural sector Simply specify the number of jobs that have increased or decreased in the US in every business sector except agriculture, and also indicates the percentage of people being hired and the unemployment rate in the United States.
The report has 2 components: employment, non-agricultural job change, and unemployment. If there is any news program that has been watched by traders all over the world and there is one news that has a high market impact, NFP is one of the forex news.
The time when
the non-agricultural employment report was issued Released monthly on the first Friday of the new month Under the review of that month The departure time is 9.30am US Eastern Time. On the website of the US Bureau of Labor Statistics And free news feeds from Bloomberg and Thomas Reuters
In terms of employment
If there is a lot of employment People have more income to spend. If there is less employment Shows that people are very unemployed Financial liquidity will be reduced. Spending will be reduced.
In terms of numbers,
if the numbers increase, it means more employment. Indicates the economy is growing, causing the USD to strengthen If the numbers decrease Will indicate the economic slowdown causing the USD to depreciate
This report is one of the reports that have a high impact on the market of all the reports published in the Economic News calendar. Or for many reasons It was released a lot at the beginning of the month and is the largest consumer of raw materials and finished products imported from many countries such as China and Japan. The US employment situation has a very direct impact on the performance of The NFP global economy affects many other economic indicators, such as production. Consumer confidence And spending, retail sales, GDP, inflation, trade balance, etc.
Trading NFP is very difficult. Two components of the press release must work in production agreements to meet market requirements.
If employment outside the agricultural sector Lower than expected and higher than expected employment rates, causing the USD to be negative as the unemployment rate tends to increase as the number of jobs becomes smaller.
At the same time, when more jobs are added than expected, it means that those being removed from the labor market means that when the unemployment rate falls, it reflects the USD’s positive trend.
The currency pair chosen for this trade is USDJPY, because the United States is Japan’s largest trading partner. And the largest consumer of goods that makes the Japanese export-oriented economy
To sum up, the
NFP has a wide range of price movements in the stock market and commodity markets, in addition to the forex market. It is sophisticated news that requires trading experience, so beginners shouldn’t be trading.
If the news of lying – the farm came out good or green, would be good for the dollar. If the news of lying – the farm came out badly or red, it would have a bad effect on the dollar.