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
The upcoming NFP’s importance lies in the exceptionally high figure for total nonfarm last month, more than double the consensus.
517,000 for January is expected to be revised downward at least to some degree, but the level of revision is the key intrigue.
Last month’s 3.4% unemployment was the lowest for more than 50 years, so another surprise lower would strongly suggest gains for the dollar and tighter monetary policy.
M15’s ATR for gold peaked at $7.87 after the previous NFP: volatility will almost certainly be as high or higher this time round.
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.
