Do you have your strategy for this NFP?

Traders Den

Non-farm payrolls are coming up on Friday. As a key economic indicator, it often leads to significant movements.

The NFP is always a highly anticipated release. It shows the change in the number of employed people in the US from month to month, not including the farming sector. It’s commonly regarded as an indicator of the health of the US economy, and that means it has an impact on the dollar and wider markets.

If the NFP is higher than expected, stocks and the dollar often make gains, while a lower figure can mean the opposite.

What to expect from this month’s NFP

  • Last month’s somewhat negative NFP gave gold an initial boost but no immediate follow-through around the critical resistance of $2,000.
  • The US dollar has generally weakened in November amid expectations of a pivot by the Fed earlier next year.
  • A gentle slowdown in the job market in the USA seems to be an established narrative, so there might be greater focus on the Fed on 13 December.
  • M30’s ATR for gold peaked at $5 after last month’s release. Volatility could be similar this time given the short gap between the job report and the Fed’s statement.

Are you ready to trade the NFP?
The response to the NFP can sometimes cause market volatility. We suggest you fund your account in advance of the release so you’re ready to trade any opportunities that arise.