β#ForexChief #NFP #NonfarmPayrolls #BureauOfLaborStatistics #stocks #StockExchange #profit β
π‘ What do Nonfarm Payrolls consist of?β
π Market Β«eventΒ», which is listed on the economic calendar as NFP, is a set of several indicators that characterize the US labour market. The results of the NFP affect the stock market, the dollar, treasury bonds and the price of gold.
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This report is considered a lagging indicator. The source of information for NFP is Bureau of Labor Statistics. Calculation uses sample data on the number, pay and working hours of employees in 340,000 firms from 500 sectors of the economy, except for non-profit companies and some groups of officials β social workers, military personnel, police officers, etc.
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The most important elements in an NFP report are:β’ establishment employment β calculated based on payrolls for wages in non-agricultural sectors;
β’ household employment β is formed based on a selective personal survey of 60,000 people among the working population of US, including agricultural workers and self-employed entrepreneurs.
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At the same time, other data are published:β’ Participation Rate, Unemployment rate, the impact on the dollar exchange rate is average;
β’ average workweek, average weekly wage and average hourly wage, the impact on the dollar is weak.
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In general, increases in employment means both that businesses are hiring which means they are growing and that the newly-employed people have money to spend on goods and services, which further fuels growth. The opposite is true for decreases in employment.
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Please note that NFP data is often corrected in future releases and data may differ dramatically from previous ones.
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We remind: you that during the NFP data release period, speculators become active, uncontrolled volatility occurs, and the risk of losses increases significantly. If you do not have solid experience of trading in such conditions, then it is better to stay in the Β«out of marketΒ» situation.
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Profits to yβall!