Are you ready?
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
- Once again this month the NFP is expected to be weaker at around 240,000, but given that the figure for total nonfarm has consistently beaten the consensus in 2023 so far a higher number is not unlikely.
- If so, the dollar might make gains and gold retreat, but it’s critical to watch developing expectations for the Fed’s next meeting on 3 May.
- Last month’s job report was mixed overall with unemployment unexpectedly increasing to 3.6% even as more jobs were added.
- Gold is the main instrument in focus for this month’s job report because of its recent consolidation in a triangular pattern and strong resistance around $2,000.
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.