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.
Don’t miss it. The NFP is due on Friday
- The next NFP is expected to be mixed, with total nonfarm and the rate of unemployed possibly declining while the rate of increase in earnings could accelerate.
- The context from monetary policy is particularly important this month because the Fed has repeatedly stressed ‘higher for long’ and hinted at its last meeting than another hike is possible in November or December.
- M15’s ATR for gold peaked around $4.20 after last month’s NFP; it seems likely to be higher this time unless the overall result is particularly ambiguous.
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.