Are you ready?
Non-farm payrolls are coming up on Friday. As a key economic indicator, it often leads to significant movements.
he 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 the NFP this month is seen lower, but the consistent pattern of positive results this year means traders should probably regard the forecast critically.
- Participants noted hawkish comments from most main central banks last week as the Fed is expected to hike at least once more this quarter.
- Unemployment is important this month because of the unexpectedly higher result last time. 3.7% is the highest since February of last year.
- M15’s ATR for gold last month peaked around $4.30, which is quite low but seasonally typical. It’s unclear how the current focus on monetary policy might affect volatility this time.
Previous NFP 339,000
Expected NFP 225,000
Previous unemployment 3.7%
Expected unemployment 3.6%
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.