#ForexChief #NFP #forexnews #DXY #S&500
#FTSE100 #Nikkei225 #gold #worldnews #forexmarket ⠀
🚀 Again NFP: What to Trade? ⠀
💱 Nonfarm Payrolls is a key indicator of the US economic situation. If employment and wages in the industrial and service sectors are high, the dynamics will be positive. This means that the population not only produces goods, but also consumes them, stimulating an improvement in the economic situation. If wages are falling and jobs are dwindling, consumers have nothing to buy goods and «sponsor» the economy.
⠀
Data source is the most reliable: payroll accounts that have been submitted to Department of Labor. NFP is perceived by the markets as a lagging indicator; its calculation does not take into account the number of self-employed citizens (household employment), agricultural workers and employees of non-profit (charitable) organizations.
⠀
Usually, on the NFP publication, dollar grows for a short time (within 20-30 minutes) on data on increase in the number of employed and falls sharply on a decrease in this indicator. The stock indices of the USA, Asia-Pacific region, Eurozone countries and Great Britain react in the same way.
⠀
In this case, the gold spot-assets have the opposite dynamics: the price decreases with the increase in number of employees and grows with the decrease in the percentage of workers with a constant salary.
⠀
A reaction suitable for opening trade transactions can be expected: ▪️ on major currency pairs − EUR/USD, AUD/USD, USD/JPY;
▪️ on indices − DXY, S&500, FTSE 100, Nikkei 225;
▪️ on shares of companies in the trading and industrial sector;
▪️ on assets with gold participation.
⠀
Range and duration of the reaction depends on the absolute deviation of the actual data from the forecast. Currencies always give a stronger and more short-term reaction. The impact on the stock market can be felt at a distance of 3-5 trading days.
⠀
Profits to y’all!