However, if the NFP shows an unhealthy US economy — with high unemployment, low job growth and wage stagnation — then investment rates will fall. This would likely cause the US dollar to fall in comparison to other currencies. Non-farm payrolls reports look at the impact the labour force has on the economy, which will have knock on effects for the stock market and the price of commodities — largely gold and silver. When the NFP presents strong employment figures, this is a sign that companies across industries are doing well, which can lead to increased optimism around company stocks.
Non-Farm Payrolls (NFP) Definition | Forexpedia by
If the NFP data indicates the US economy is in a period of contraction, popular safe havens such as gold and silver may see increased investment flows. Before the NFP release, economists and analysts will attempt to predict what the headline NFP number will be, and eventually arrive at a consensus estimate. Once the real figures are released, the market response will depend on how close the estimate was to the actual figure — as any surprises will cause traders to rush in and out of positions. The volatility the NFP creates is what provides traders with opportunities for profit — but it is also risky.
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Forex Weekly Fundamental Forecast- Non-Farm Payroll on Good Friday
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Forex News – US Non-Farm payroll data lower than expected
You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. Learn to trade the non-farm payrolls. Trading strategies With so many investors watching this data release, the payrolls can result in some sharp moves in the markets, both up and down, depending on how close the actual figure is to estimates made ahead of the announcement.
Fading the initial move One approach is to wait and see how the markets react when the news comes out.
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Learn more about forex trading with us Trading the trend Another approach is where traders assume the initial market reaction was actually correct. Risk management While volatility in the markets around the non-farm payrolls announcement is an opportunity for traders to try and profit, it can also result in a losing trade very quickly.
The bottom line There really is no silver bullet when it comes to trading the non-farm payrolls.
Nonfarm payrolls
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