nfp-non-farm-payroll-market-outlook

Live NFP Commentary on Facebook with HotForex from 13:25 GMT

Tomorrow Friday January 4th is Non-Farm Payroll day.

Following a restrained 155k November increase and Earnings rising to 3.1%, these key data releases will be watched with added interest by both institutional and retail investors.

The median forecast of economists polled by Reuters is for the Non-Farm Payroll to rise by 177,000, with a range in estimates from 150,000 to 215,000.

They will keep you updated via the analysis page where HotForex’s analyst will have additional live commentary on the results, and market action and reaction.

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U.S. Non-Farm Payroll (NFP) gives a timely glimpse into employment changes inside of the United States affecting most Currency Pairs, Indices, Metals and Oils.

If the actual data comes in lower than economists’ forecast, forex traders will usually sell U.S. dollars in anticipation of a weakening economy.

The opposite is true when the data is higher than economists’ expectations.

NFP volatility can cause both upward or downward movement, CFD trading allows you to potentially benefit from both scenarios because you aren’t obligated to actually own the asset.

What to be aware of during the NFP

  1. A sudden spike that may appear on many currency pairs once the NFP is announced usually subsides right after and corrects itself towards the initial price.
  2. NFP volatility not only affects USD pairs but may affect commodities and even metals closely tied to the Dollar’s price.
  3. Safe havens such as Gold (XAU) may also be affected, especially in a negative scenario in which investors sell-off USD pairs and turn to safe havens to mitigate risk.
  4. Actually, when analyzing the NFP, investors also look at two other indicators, namely the Unemployment Rate and the Average Hourly Earnings. If either or both of those indicators are strong, a negative NFP might not impact the USD as significantly.

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