Nonfarm Payrolls (NFP) in the United States (US) rose by 139,000 in May, the US Bureau of Labor Statistics (BLS) reported on Friday. This reading followed the 147,000 increase (revised from 177,000) recorded in April and came in slightly better than the market expectation of 130,000.
Nonfarm Payrolls (NFP) in the US rose by 177,000 in April, the US Bureau of Labor Statistics (BLS) reported on Friday. This reading followed the 185,000 increase (revised from 228,000) and came in better than analysts' estimate of 130,000.
Nonfarm Payrolls (NFP) in the US rose by 228,000 in March, the US Bureau of Labor Statistics (BLS) reported on Friday.
Nonfarm Payrolls (NFP) in the US rose by 151,000 in February, the US Bureau of Labor Statistics (BLS) reported on Friday.
EUR/USD now surrenders part of the earlier advance to fresh highs and recedes to the sub-1.1700 region, charting humble losses at the end of the week. The US Dollar, in the meantime, maintains its gradual recovery following early multi-year lows. The US headline PCE showed prices rose by 2.3% in the year to May, a tad higher than April’s readings.
GBP/USD now comes under extra selling pressure amid the slow-paced rebound in the Greenback, retreating to daily lows in the 1.3690-1.3680 band. The US Dollar, meanwhile, manages to gather further traction and leave behind earlier multi-year lows.
Gold prices now seem to have embarked on a consolidative mood around the $3,270 zone on Friday as the bounce in the US Dollar appears to pick up pace, while the rebound in US yields across the curve also keep the yellow metal under pressure.
The S&P 500 has garnered a new all-time high on Friday, reaching 6,170 at the time of writing to overtake the February 19 high from four months ago. The index has risen slightly more than half a percentage point.
Big isn’t beautiful when it comes to government debt, but tariffs and the Department of Government Efficiency (DOGE) help to plug the hole left by President Trump’s latest fiscal bill. The net effect will be weaker growth, with US government debt remaining on a worrying trajectory.
The Nonfarm Payrolls (NFP) report measures the number of jobs added or lost in the US economy over the prior month. It is usually released by the US Department of Labor on the first Friday of each month at 8:30 ET.
The report is important because the US is the largest economy in the world and its currency (the US Dollar) is the global reserve currency. This means that many economies peg their currency's value to that of the USD and many commodities such as Gold and Oil are priced in terms of the Dollar.
The NFP report tends to move all markets: currencies, equities, bonds, commodities and cryptocurrencies. It does so immediately after the release of the economic data and sometimes dramatically.
The Nonfarm Payrolls (NFP) report is arguably one of the biggest market movers in the Forex. The NFP figure can influence the decisions of the Federal Reserve (Fed) by providing a measure of how successfully the Fed is meeting its mandate of fostering full employment and 2% inflation.
A relatively high NFP figure means more people are in employment, earning more money and therefore probably spending more. A relatively low Nonfarm Payrolls’ result, on the either hand, could mean people are struggling to find work.
The Fed will typically raise interest rates to combat high inflation triggered by low unemployment and lower them to stimulate a stagnant labor market.
During NFP data release, spreads first fall apart and recover slowly afterwards as market calms down.
The Non Farm Payrolls report is arguably one of biggest market movers in the Forex. Since the NFP report is scheduled this coming week, I thought it would be good for us to take a closer look at this fundamental giant.
Nonfarm Payrolls generally have a positive correlation with the US Dollar. This means when payrolls’ figures come out higher-than-expected the USD tends to rally and vice versa when they are lower.
NFPs influence the US Dollar by virtue of their impact on inflation, monetary policy expectations and interest rates. A higher NFP usually means the Federal Reserve will be more tight in its monetary policy, supporting the USD.
Nonfarm Payrolls are generally negatively correlated with the price of Gold. This means a higher-than-expected payroll figure will have a depressing effect on the Gold price and vice versa.
Higher NFP generally has a positive effect on the value of the USD, and like most major commodities Gold is priced in US Dollars. If the USD gains in value, therefore, it requires less Dollars to buy an ounce of Gold.
Also, higher interest rates (typically helped higher NFPs) also lessen the attractiveness of Gold as an investment compared to staying in cash, where the money will at least earn interest.
Those who trade NFP releases base their advice on previous preparation and some fundamental research. The elaboration of some macroeconomic analysis is essential for successful trading.
This research includes averages of past headline NFP numbers, Weekly Jobless Claims, ISM reports, or other employment data published earlier such as ADP, JOLTS, or the Challenger report.
Nonfarm Payrolls is only one component within a bigger jobs report and the data can be overshadowed by the other components.
At times, when NFP comes out higher than forecast, but the Average Weekly Earnings is lower than expected, the market has ignored the potentially inflationary effect of the headline result and interpreted the fall in earnings as deflationary.
The Participation Rate and the Average Weekly Hours components can also influence the market reaction, but to a much lesser extent.
