Good news is bad news – for stocks, but not the dollar, and more may be in store. The US has reported another impressive month of job growth, 372,000 in June, on top of only a minor downward revision of 6,000 for May.
Nonfarm Payrolls in the US rose by 372,000 in June, the data published by the US Bureau of Labor Statistics revealed on Friday. This reading followed May's increase of 384,000 (revised from 390,000) and came in better than the market expectation of 268,000.
Make the trend your friend – goes the old adage, and the wind is currently blowing in the dollar's sails. This is only one reason to favor seeing the greenback in the green. I will explain why only one combination of labor and wage growth could result in a dollar sell-off.
Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAUUSD pair's reaction to the previous 23 NFP prints.
The US economy added 390,000 jobs in May, according to the latest Non-farm Payrolls (NFP) report released by the US Bureau of Labour Statistics on Friday. That was above the median economist forecast for a gain of 325,000 jobs, though slightly lower versus April's 436,000 gain (revised up from 428,000).
Two months of weaker than expected wage increases in a row – is the most important thing for the Federal Reserve, which is fighting inflation. The rest is less important. The US gained 390,000 jobs in May, better than 328,000 expected, but on top of downward revisions.
The US economy added 428,000 jobs in April, according to the latest Non-farm Payrolls report released by the US Bureau of Labour Statistics on Friday. That was a little above the median economist forecast for a gain of 391,000 jobs, and exactly in line with pace of jobs gains in March (which was revised lower to 428,000 from 431,000).
Everybody gets a raise – whether it is the Great Resignation or not-so-great factors, Americans' salaries are rising on a broad base. The headline Average Hourly Earnings MoM has missed with only 0.3% vs. 0.4%. However, it came on top of an upward revision to last month's figure – 0.5% reported now vs. 0.4% in the original publication.
America is hiring – while the headline Nonfarm Payrolls figure missed estimates with 431,000 vs. 490,000 projected, revisions add 95,000, more than compensating for the marginally worse than projected figure. In comparison to the pre-pandemic levels of around 200,000 per month, the labor market is extremely healthy.
Nonfarm Payrolls (NFP) rose by 431,000 in March, below the median economist forecast for a 490,000 rise, data published by the US Bureau of Labor Statistics showed on Friday. However, the February Non-Farm Payrolls number received a hefty 72,000 upwards revision to 750,000 from 678,000, more than making up for the 59,000 miss on the March headline expected number.
As if the dollar needs another boost – February's Nonfarm Payrolls have confirmed that the US labor market is on fire. The economy is benefiting from the retreat of the Omicron COVID-19 variant, which further cements the first pandemic-era rate hike from the Federal Reserve. The war will not stop the central bank.
Nonfarm Payrolls (NFP) rose by 678K in February, well above the median economist forecast for a 400K rise, data published by the US Bureau of Labor Statistics showed on Friday. January's NFP number also saw a small upwards revision to 481K from 467K.
The US economy is on fire – there is no other way to interpret the Nonfarm Payrolls report for January 2022. The economy gained 467,000 jobs, roughly triple the early expectations – and on top of a revision worth more than 300K for December.
Nonfarm Payrolls (NFP) rose by 467K in January versus the median forecast for a 150K rise, data published by the US Bureau of Labor Statistics showed on Friday. That marked a slight deceleration from December's pace of job gains when 503K jobs were added (revised up from 199K).
EUR/USD is heading south towards 1.0200 in early Europe, as bulls failed to keep reins near the monthly high. Mounting US-China tensions over Taiwan and recession fears weigh on risk sentiment and help the dollar find demand as a safe haven.
GBP/USD is trading deep in red near 1.2200, as investors turn away from higher-yielding assets such as the GBP. Despite falling US Treasury bond yields, the dollar manages to gather strength amid risk aversion. US Pelosi's visit to Taiwan is the main event risk this Tuesday.
Gold price eases but upside remains favored amid escalating US-China tensions. The expected visit of US’ Pelosi to Taipei rattles markets amid China warnings. Gold bulls remain on track to test the critical resistance area at $1,786.
Bitcoin price is currently retesting the 200-week SMA at $22,794, anticipating a minor bounce. There are three trade opportunities that BTC presents, two of which favor the bears.
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NonFarm Payrolls report measures the number of jobs added or lost in the US economy over the last month. It is released usually on the first Friday of each month, at 8:30 EST. It is published by the US Department of Labor.
This report is important because the US is the largest economy in the world and its currency (US Dollar) is the global reserve currency. The many economies peg (tie) their currency's value to the reserve currency, many commodities such as gold and oil are priced in terms of the reserve currency and the local economy's debt is priced in terms of its own currency.
The NFP report, because of its importance to the reserve currency, tends to move all markets: currencies, equities, treasuries, interest rates and also commodities. It does it so immediately after the release of the economic data and sometimes so dramatically.
The mission of the DOL is to assure the prosperity of the wage earners, job seekers which includes more than 10 million employers and 125 million workers in the USA. 180 federal laws and several federal regulations are the key of the Departament Labor promotion of benefits and rights.
During NFP data release, spreads first fall apart and recover slowly afterwards as market calms down.
The Non Farm Payrolls report is arguably one of biggest market movers in the Forex. Since the NFP report is scheduled this coming week, I thought it would be good for us to take a closer look at this fundamental giant.
Those who advocate trading NFP releases base their advice on a previous preparation and some fundamental research. The elaboration of some macroeconomical analysis is essential for successful trading.
This research includes averages of past headline NFP numbers, Weekly Jobless Claims, ISM Industry Data reports or other employment reports as the ADP or the Challenger. Tracking these events is fundamental on the preparation of the trades to set up just after the release. You can check all this data on FXStreet Economic Calendar: ADP Report, Initial Jobless Claims, ISM Industry Data.
A lot more skeptical on the benefits of trading the event, as you can read in his article “Step aside the NonFarm Payrolls release”, Adrián Aquaro, President at Trader College, says its importance has decreased a little bit lately:
“Even if the impact has diminished gradually over time, still generates huge attention on the markets and it normally drives important monthly trends. Lately another event (the Fed Monetary Policy Meetings) has been driving similar attention, thanks mainly to the Interest Rates being at 0%.”
A NonFarm Payrolls Forecast is some sentiment-based piece of content that tries to predict what the NFP numbers will be and what impact will they have on the markets. In this page, you'll find some articles and tools that will help you to understand which could be the outlook for ADP Report, Unemployment Rate, Average Hourly Earnings, Labor Force Participation Rate and some other important economic indicators.
The ADP (National Employment Report) is an estimation of nonfarm employment which is based on a survey of thousands of private sector businesses. One of the biggest differences between NFP data and ADP data is the sample and methodology of the study. ADP Jobs Report could show us an anticipation of the NFP's trends. Some outlooks are mainly based on the Jobs Report, in past data and in other related job indicators like Initial/Continuing Jobless Claims.
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