NFP

The Non-Farm Wages Report (NFP) is an important economic indicator of the US economy released by the “Bureau of Labor Statistics” (BLS) in the “Employment Situation” report. The report measures the number of U.S. workers employed in the goods, manufacturing and construction sectors, which make up 80% of the U.S. workforce. Rural workers, public employees, private domestic employees and non-profit employees are excluded.

The number of jobs added or lost in the US economy indicates the state of the US economy and can influence the Federal Open Market Committee’s (FOMC) interest rate decision.

• Unemployment rate
• Number of jobs created or lost in a specific sector
• Average hourly wage in the US

Traders closely monitor this monthly report due to its potential to influence global markets, create market movements and cause volatility. Analysts and traders try to speculate on the upcoming NFP data even before the official report.

Which markets are most affected by the NFP report?

USD and forex pairs like EUR/USD, GBP/USD, AUD/USD are heavily influenced by NFP data. Generally, if the data shows a healthy US economy with growth and jobs created, the USD is strong. On the other hand, a declining economy with a rising unemployment rate and a possible interest rate cut could cause traders to turn to stronger currencies.

The NFP report also influences gold. For example, if the report data shows that the state of the US economy is declining, and the USD appears weak in the eyes of traders, traders may turn to safe-haven assets like gold.

The report is released on the first Friday of each month, one hour before the US stock market opens.