Best Forex Brokers:US Non-Farm Payrolls report will be published on Friday!

Best Forex Brokers:US Non-Farm Payrolls report will be published on Friday!

AvaTrade wants you to be prepared for the U.S. Non-Farm Payrolls report that will be published this Friday, 5th of September, at 12.30 GMT!

What is Non-Farm Employment Report?

The Non-Farm Payrolls (NFP) details the change in the number of people employed during the previous month, excluding the farming industry. This is one of the most influential statistic and economic indicators, released on a monthly basis by the United States Department of Labor. The tradable instruments most affected by the report include USD, Equities and Gold. These figures are released on the first Friday of each month.

Check out the chart below to see what happened last month:

Our Chief Analyst, Naeem Aslam says “Generally speaking, stronger data for the US means that its currency can become stronger by attracting more demand for the US dollar. We also know that good data also means the Fed will stay on autopilot and will not only wind up their quantitative easing program, but will also raise the interest rate. Under such a scenario, the US dollar could just go through the roof and this is one of the main reasons why we have seen so much strength in the dollar index.
Having said that, winding up the quantitative easing and an increase in the interest rate is already somewhat priced in; however what really concerns me is the pace of increase in the interest rate. If we start receiving the economic data too strong, this will make the Fed look like that they are behind the curve given that Janet Yellen, Fed Chairwomen, has repeatedly said that there is still a lot of slack in the labour market. Perhaps a weak number could take some wind out of this dollar rally.”

Traders all over the world are taking advantage of these excellent trading opportunities, so make sure you stay tuned and don’t miss out!!

Best Regards,