Non-Farm Payroll/ Non-Farm Employment News (USD)
Non-farm payrolls (NFP) are an important economic indicator related to employment in the U.S . On the first Friday of each month (sometimes the second), at 8:30 AM EST, the non-farm payroll (NFP) data is released. The report reveals the US employment situation, shedding light on the strength of the economy.
NFP affect in forex pair ?
As an indicator of American employment, NFP affects major currency pairs in the leading currency markets. So, the currency pairs it affects are the EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, GBP/USD and other currencies traded against the US dollar.
The report causes a massive reshuffling in positions, and seeing a 75 to 100 pip move in the GBPUSD in the minutes and hours following the announcement is quite common. During volatile times, when overall movement is already quite high, the report can cause moves of 200 pips or more. On a typical Friday, the GBPUSD will move approximately 100 pips (10-week average as of May 31, 2018). On a non-farm payroll release day, intraday movement could be much larger.
Does NFP affect in gold ?
The NFP has an impact on gold if only because of its effect on the dollar. In reality, the NFP's economic impact goes much further. A strong NFP may, in fact, support gold prices if there is a sign of industrial and/or physical demand within the economy.
The price of gold tends to fall on the day when the Nonfarm Payroll Report comes out. In case of bad news from the labor market, the situation is reversed. ... Therefore, strong (weak) jobs reports confirm that the U.S. economy is in a good (bad) shape, which is bearish (bullish) for the price of gold.
That means Gold agrees with the non-firm payroll. To put it more bluntly, if the non-firm payroll target is 540K and the result is 530K, then XAUUSD will go to sale. If the non-firm payroll target is 540K and the result is 550K, then XAUUSD will go to buy.
