NFP: What’s all the fuss about?
Friday is looking like a big day for trading enthusiasts, as we are expecting the NFP report from the United States. This event usually causes a significant movement in the markets.
The NFP, an acronym for Non-Farm Payrolls, is a monthly report that measures the change in the number of people who have been employed during the previous month, with the exception of people employed in the farming sector. The NFP report takes place every first Friday of each month at 8:30 am ET.
The reason why the NFP is so essential is because job creation is the most important indicator of consumer spending, which in turn indicates the majority of the country’s economic activity.
A result that is higher than expected can be considered positive, in which case the USD will experience a bullish trend. In contrast, a lower-than-expected outcome can be regarded as negative, in which case the USD will follow a bearish trend.
It could be worth keeping in mind that the value of the USD also affects the price of gold, in case you prefer trading precious metals to currency pairs or even both.
The NFP is an excellent opportunity to take advantage of, in the online markets, as it usually causes a lot of volatility and opens doors for trading on the USD or other instruments related to it.
