GBPUSD Trading Forecast on Non-Firm Payroll 6th Oct-23 | (2024)

FAQs

What is the forecast for non-farm payrolls in the US? ›

US Nonfarm Payrolls are forecast to rise by 243K in April, down from March's 303K gain. The United States Employment report will be released by the Bureau of Labor Statistics at 12:30 GMT. The US Dollar looks to employment data after the Fed signaled its intention to hold rates higher for longer on Wednesday.

The nonfarm payroll (NFP) report is a key economic indicator for the United States and represents the total number of paid workers in the U.S. excluding those employed by farms, the federal government, private households, and nonprofit organizations.

With a few exceptions due to market holidays, non-farm payroll data hits the newswires at 8:30 a.m. Eastern Time on the first Friday of every month.

Is Nonfarm Payrolls a Leading or Lagging Indicator? The nonfarm payroll report is not a leading indicator but provides a snapshot of incidents that affect the overall economy.

Positive employment growth, indicated by a higher than projected non-farm payroll figure, often leads to an appreciation in the value of the US dollar. This is mainly due to increased demand for the currency, as a robust labor market implies a strong economy, and many investors seek to invest in the US.

Most Popular Currency Pairs to Trade

The NFP impacts currency pairs that include the US dollar the most, so major pairs, such as the GBP/USD, EUR/USD, AUD/USD and USD/JPY see the highest trading volumes before, during and after the release of the report.

How many pips does the NFP usually move? The first hour following the release of non-farm payrolls data usually sees the EUR/USD currency pair move by 50 pips and the USD/JPY currency pair move by 64 pips.

This increased volatility inevitably provides trading opportunities, however, it is also accompanied by a significant increase in risk. Consequently, NFP trading can be risky. For this reason, many traders choose to stay out of the markets around its release.

Nonfarm payrolls is an employment report released monthly, usually on the first Friday of every month, and heavily affects the US dollar, the bond market and the stock market.

Is non farm payroll every month? ›

The non-farms payroll report (NFP) is the monthly release of data on the 80% of the US workforce employed in manufacturing, construction and goods.

A higher-than-expected NFP figure can indicate a resilient economy and higher consumer demand. As a result, companies perform better; earnings are higher, as is investor confidence. This can cause the stock market to rise.

It is an influential statistic and economic indicator released monthly by the United States Department of Labor as part of a comprehensive report on the state of the labor market. The financial assets most affected by the nonfarm payroll (NFP) data include the US dollar, equities and gold.

NFPs typically encourage high market volatility on certain instruments, as investors seek to take advantage of the rapid price movements and react to the data release.

The Bureau of Labor Statistics reported that nonfarm payroll employment rose by 175,000 in April, well below consensus expectations for an increase of 230,000.

The non-farms payroll report (NFP) is the monthly release of data on the 80% of the US workforce employed in manufacturing, construction and goods.