Today’s Non-farm Payrolls report is probably one of the most keenly anticipated by anyone that is actively engaged in the markets. Released by The U.S. Bureau of Labor Statistics, it tracks data reflecting on labour conditions of the previous month and compares the amount of jobs created to this month, excluding individuals who work in the farming sector. As The NFP provides investors with significant insight on the economy’s health, many use it’s figures as a trading tool. It accounts for over 80% of the work-force that produce the GDP figures, so with that said, it’s clear that it’s figures have a direct impact on the value of the USD and the value of Gold.
Typically, there are two ways to interpret the NFP results; if figures are high then this would suggest that the economy is performing well, people are employed and therefore the Dollar can be expected to appreciate. If on the other hand, figures are low, then this could be interpreted as a negative indication for the economy and we could expect to see the value of the Dollar depreciate. This is all relative, as figures of previous months and figures of The Unemployment report are just as relevant as the header figure.
Stay tuned and be the first to capitalise on The NFP’s ripples. If any report is to cause movement in the markets, it’s the NFP.
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