One of the most important monthly economic data points in a trader’s diary is the release of U.S. Non-Farm Payroll Report. This figure carries great significance for traders as it gives an indication of job growth in the United States.
What is non-agricultural data?
Non-agricultural data refers to the number of non-agricultural employment, employment rate and unemployment rate in the United States. It is compiled by the Bureau of Statistics of the United States Department of Labor and released on the first Friday of each month at 8:30 p.m. Beijing time. Non-agricultural data can directly reflect the employment situation in the United States, directly linked to the overall economy, and is a barometer of the good or bad of the US economy. The market fluctuates greatly before and after the release of non-agricultural data. Experienced investors can often obtain a lot of market-sensitive information during this period and make considerable profits in a short period of time.
Why non-agricultural data will affect the market?
The main reason why the non-agricultural data will have an impact on foreign exchange investment is that many foreign exchange investors will make corresponding predictions before the non-agricultural data is released, and then make different foreign exchange trading decisions according to the corresponding changes in the market This creates a fluctuating atmosphere in the market and provides a basis for fluctuations. The Fed will also use the data as the basis for interest rate decisions. How to see non-agricultural data? The non-agricultural data is mainly based on the comparison with the previous value of last month and the small non-agricultural data of this month. Under normal circumstances, if the non-agricultural data performs better, that is to say, the employment rate in the United States rises, it indicates that the economy is developing well and consumption will increase, which will prompt more people to reduce their holdings of non-dollar assets and invest in dollar assets to increase the dollar. value. If the performance of the non-agricultural data is poor, that is to say, the unemployment rate is rising and the employment rate is not good, it indicates that the economic situation is not good, which will prompt more people to sell dollar assets and turn to non-dollar safe-haven assets such as gold and Japanese yen. This in turn will cause the dollar to fall. It should be noted that the relationship between the U.S. dollar and gold is generally inversely proportional. That is to say, if the U.S. dollar rises, investors will generally buy U.S. dollars to appreciate and sell gold. Similarly, if the U.S. dollar falls, investors will generally sell U.S. dollars and buy gold. Increasing the value of.