Tomorrow’s NFP day: ready to trade?
This article is originally referred from EverFX News.
U.S. Nonfarm Payroll data is one of the most powerful indicators in the world of trading, a number that has the ability to move the needle in either direction.
As with every monthly announcement, the question remains the same: What will the results look like on Friday, but most importantly, how will it affect the market?
NFP data release on FRIDAY, 2 NOVEMBER, 14.30 (GMT+2)
The latest iteration of the NFP saw a gain of only 134,000 positions in September, a number that was significantly lower to the 185,000 expected and well below unofficial projections which were even higher.
The main reason for this discrepancy is hurricane Florence.
The Bureau of Labor Statistics Latest Numbers reported that Florence may have affected some industries despite not being as severe as Harvey or Irma of last year.
The prediction for this month’s results show a number of 190,000 but what’s interesting to note is the hourly earnings figures which are expected to rise 3.1% from last year.
It’s also important to bear in mind that the dollar is generally having a strong 2018.
The Federal Reserve’s hawkish monetary policy has seen an increase in interest rates three times this year, something that has significantly strengthened the currency.
Expectations for the NFP are set high once again and it remains to be seen if the data will meet them.
- The NFP measures the change in numbers of employees in the USA
- Seen as a key economic indicator, new jobs help to determine consumer spending
- Last month’s figure of 134,000 was significantly lower than expected
- With about 190,000 predicted, it could be onward and upward for the dollar
|3 August||NFP (July)||157,000||191,000|
|7 September||NFP (August)||201,000||191,000|
|5 October||NFP (September)||134,000||185,000|
Original Source: EverFX News