Nonfarm payrolls news is always an important and influential event in the economic calendar. Therefore, it seems to have received the attention of many traders. However, for some less experienced investors when it comes to the NonFarm message board. Surely questions will appear in your mind such as: What is NonFarm news? When will it be announced? So, the following article of Learn Forex Trading is for you. Because we will answer all questions and help traders better understand NonFarm in trading.
What is nonfarm payrolls news in Forex?
Non-Farm Bulletin, or NFP, is a database that reports on nonfarm employment conditions. In particular, NonFarm news shows information about labor activities, the labor force, and the number of jobs in the month released by the United States Department of Labor (US Department of Labor). Based on the information presented, traders can make comments and assessments about the labor situation in the United States. At the same time, reported data are also considered numbers that represent the state of the US economy at a certain time. Even explaining the federal reserve system can be affected by the indicators given by Non-Farm.
Specifically, Nonfarm payrolls news will present statistical information about the number of people employed in all businesses nationwide. Except for places like local government, agriculture, private households or non-profit organizations.
See more: What is inflation that has a strong impact on Forex?
Why is the NonFarm message board important to investors?
So why is it said that the NonFarm message board plays an important role for investors? Because:
- Any updated information on NonFarm news can affect the USD value. The USD is currently considered the common currency of the world economy. In particular, in the Forex market, USD is also the currency pair that can dominate the market. From there, it affects the exchange rates of currency pairs and causes the market to fluctuate strongly.
- The information provided by NFP about the labor situation in the market contains real data that reflects the reality of the US economy at present.
- The NonFarm newsletter also summarizes and reports on the current income level of workers. Thereby, investors can accurately reflect users’ spending ability. This is also the number that shows the sales power and turnover of businesses. Therefore, it can be said that NFP is a measure of the growth of the US economy.
- Nonfarm newsletters can lead to market waves. Also, adjust prices for new months because it is updated on the first Friday of the month.
What data is provided in the NonFarm newsletter?
Non-Farm is truly an economic newsletter that gives traders a lot of useful information. Some of the data you can collect when exploring the NonFarm newsletter is:
- Unemployment Rate: Percentage of workers who are currently unemployed.
- Non-Farm Employment Change: Percentage of people participating in non-agricultural labor at present.
- Average Hourly Earnings: The average hourly income of current workers.
An illustrative example of market volatility caused by Nonfarm payrolls news
To help readers better understand the impact of Nonfarm payrolls news on the market. They will continue to learn through the following illustrative example:
For example: Investors predict that next month’s employment rate will increase. However, by the time the NonFarm bulletin board was announced, the employment rate in the US had decreased. This has a serious impact on reducing the value of USD in the market. It even affects many other currency pairs. Or in another case, when the wage rate increases continuously for many months. This is one of the telltale signs of inflation. And it’s not good news for a developed economy like the US. In addition, the consumption force when wages decrease can lead to increased unemployment.
When is Non-Farm Forex news announced?
Traders can regularly update Nonfarm payrolls news (US non-farm payrolls) on the first Friday of the month. According to UK time, in the summer NonFarm news is updated at 7:30 pm and in the winter it will be 8:30 pm. Periodically, the NonFarm bulletin board will be updated 12 times a year.
With updated and fully detailed information every month to users. We can confirm that Non-Farm Forex news is completely capable of leading the entire market trend this month. Even leading an up or down trend in the market for a long time. Thanks to that, traders’ market research activities become easier than ever.
Where to watch the NonFarm newsletter?
So where can traders watch the NonFarm newsletter? Traders can directly follow data from the US Non-Agriculture bulletin board along with other information related to the economy through reputable stock news sites. Or websites specializing in providing information about the foreign exchange market for all investors. For example: Investing.com, CNBC, Bloomberg, BLS…
See more: How to register ICMarkets broker account
Which Forex currency pairs are affected by Nonfarm payrolls news
As mentioned above, some Forex currency pairs can be directly affected by Nonfarm payrolls news. Therefore, when Non-farm news is announced, traders need to focus on unemployment rates. Because if the NFP data is high and the unemployment rate is low, it means the economy is stable. On the contrary, if the NFP ratio is low and the unemployment rate is high, the USD is at risk of falling sharply.
Furthermore, the US Dollar is currently the most traded currency on the market. If its value fluctuates, other related currency pairs will also be strongly affected by the Nonfarm news. Some prominent currency pairs are EUR/USD, USD/CHF, GBP/USD… In addition, precious metal products are also affected to a similar extent such as gold, silver…
summary
Surely after reading this article, you have a better understanding of Nonfarm payrolls news and its influence on the Forex market, right? Hopefully, we have become a companion to help traders’ investments and transactions become more and more successful. Don’t forget to follow the website to update more useful information about the world of financial investment Learn Forex Trading Please.
FAQs:
What is a Non-Farm message board?
Non-Farm (NFP) is a newsletter providing economic indicators in the United States. Through which to measure the number of jobs created except in the agricultural sector.
What time is Non-Farm Forex news updated?
Normally, NFP data will be published and updated at 8:30 (US Northeast time) on the first Friday of each month. However, the NonFarm announcement date may be moved in some special cases.
How does the NonFarm message board affect the Forex market?
When Non-Farm news is updated, it can affect the value of the US Dollar and other related currency pairs. It even affects the monetary policy decisions of central banks.
