Non-Farm Payrolls (NFP’s)
Non-Farm Payrolls is an important fundamental indicator which is released by the United States Department of Labour and as the name suggests, it is a report on the state of the labour market in the United States. This is normally released on the first Friday of the month and it is one of the biggest movers of financial markets with the most affected instruments being The US Dollar, Equities and Gold. The best way to interpret this key economic data is to see if there has been an increase or decrease compared to the previous month with an increase meaning that there has been more jobs created which means the economy is growing as the new employees will have money to spend on goods and services. Another way of interpreting this indicator is to look at the unemployment rate as a percentage of the NFPs, which sectors have increased or decreased and they gives you an indication on where trading opportunities lie, average hourly earnings and any revisions on previously reported figures.
Below are the pairs that are most affected by the NFP figures:
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