Non-farm data includes non-farm payrolls, employment rate and unemployment rate.
It is divided into early value, expected value and published value.
As the name suggests, this is a data indicator of the state of nonfarm payrolls in the United States.
The data are released on the first Friday of each month at 20:30 Beijing Time (daylight saving time: April-October) and 21:30 Beijing time (winter time: November-March) from the U.S. Department of Labor’s Bureau of Labor Statistics.
Non-farm data can greatly affect the value of.
A buoyant jobs report can push the dollar higher, making it more attractive to foreign investors.
Non-farm data objectively reflect the boom and bust.
In recent times, the dollar has been extremely sensitive to this data, rising above the previous value, which is positive for the dollar, and falling below expectations, which is negative for the dollar.
Nonfarm payrolls Nonfarm payrolls, also known as NFP, refers to the employment data published in the United States.
It reflects the development and expansion of manufacturing and service industries.
Fewer numbers mean fewer businesses and a recession.
When the social economy develops rapidly, consumption will naturally increase, and employment opportunities in consumption and service industries will also increase.
When nonfarm payrolls increase significantly, the economy is in good shape.
In theory, this should be good for the exchange rate, possibly implying higher interest rates, and potentially higher interest rates prompt more domestic promotion and vice versa.
Therefore, these data are important indicators to observe the degree and status of socio-economic and financial development.
Nonfarm payrolls is an item in the employment report that measures changes in employment outside of agricultural production.
Nonfarm payrolls is just one type of employment related data that has an important impact on the market.
Employment figures can tell a lot about a country’s economic health.
Employment and new employment are important to traders’ expectations of a country’s economy in the medium to long term.
Employment is the backbone of national economic growth – and rising unemployment in some countries will in turn affect economic growth in those countries.
As a result, traders will worry about the health of these countries’ economies and start selling them, weakening their currencies against those of other countries.
So if a country’s employment numbers are not healthy, then other growth-related numbers will not be good.
Why are the payrolls numbers so important?
As non-farm payrolls are a key reference for the adjustment, which will affect the strength of the dollar, traders will value these figures in anticipation each month.
In addition, the United States is the world’s largest economy and the dollar is global, so the monthly release of the NFP will be the focus of attention by investment banks, multinational corporations and central banks around the world.
Whenever the non-farm payrolls data is about to be released, expected position adjustments based on the data can lead to investment losses and some even unexpected shifts to individual currency pairs trading.
For example, if the market expects stronger data and the dollar is expected to be firmer, then it will fall and traders will tend to sell EURUSD ahead of the data release.
The volume of this position is critical.
The currency pair is influenced more by the positions of large institutional investors than by retail investors.
The actual size of the position is also important.
A reduction in the holdings of large institutional participants will have less impact on this currency pair than an increase in their holdings.
What is the unemployment rate?
The U.S. unemployment rate is another item in the U.S. jobs report.
The ratio of the unemployed to the working population in a given period (the number of all employed people who are willing to work in a given period but are still unemployed).
Its purpose is to measure the ability to work while idle.
It is the main indicator of unemployment in a country or region.
The unemployment rate is one of the most important economic indicators.
It is deeply influenced by labor market supply and demand and the economic cycle.
The level of unemployment also reflects how the economy is doing.
While unemployment is seen as a lagging indicator, it is an important signal of the health of the broader economy because consumer spending is highly correlated with the state of the labor market.
Rising unemployment suggests weaker consumption, which is bad for the economy;
The fall in the unemployment rate indicates an improvement in the economy.
Canadian dollar falls on hold;
The new rules sent the pound to its lowest level in nearly a year.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
