Skip to content
Home » Forum

Forum

What pairs get affe...
 
Notifications
Clear all

What pairs get affected by NFP?

0 Posts
1 Users
0 Likes
110 Views
0
Topic starter

In the forex market, the non-farm payroll (NFP) is an economic indicator that reports the total number of non-farm jobs added or lost during the previous month in the United States.

This indicator is released on the first Friday of every month by the Bureau of Labor Statistics (BLS), and it has a significant impact on various financial markets around the world.

The following pairs are affected by NFP:

  1. USD/JPY: The U.S. dollar and Japanese yen currency pair are highly sensitive to NFP data. If the NFP report indicates that the U.S. economy is adding jobs at a faster pace than anticipated, the USD/JPY pair usually rises. Conversely, if the NFP report indicates weak job growth or job losses, the USD/JPY pair tends to fall.

  2. EUR/USD: The euro and U.S. dollar currency pair are also affected by NFP data. If the NFP report is strong, indicating robust job growth, the EUR/USD pair typically declines. Conversely, if the NFP report is weak, indicating poor job growth, the EUR/USD pair usually rises.

  3. GBP/USD: The British pound and U.S. dollar currency pair is also influenced by NFP data. If the NFP report is positive, showing strong job growth, the GBP/USD pair typically declines. Conversely, if the NFP report is negative, indicating weak job growth, the GBP/USD pair will rise.

  4. USD/CAD: The U.S. dollar and Canadian dollar currency pair is also impacted by NFP data. If the NFP report is positive, showing strong job growth, the USD/CAD pair typically rises. Conversely, if the NFP report is negative, indicating weak job growth, the USD/CAD pair usually falls.

  5. AUD/USD: The Australian dollar and U.S. dollar currency pair are affected by NFP data. If the NFP report is positive, indicating strong job growth, the AUD/USD pair typically declines. Conversely, if the NFP report is negative, indicating weak job growth, the AUD/USD pair usually rises.

See also: What Economic Indicators Should I Be Aware Of When Trading?

In conclusion, NFP has a significant impact on various traded currency pairs. You need to pay close attention to NFP data releases as they can provide valuable insights into the health of the U.S. economy and the direction of financial markets.

Are you satisfied with this answer, Do you have more questions? feel free to ask and get exclusive answers, Invite friends for more discussion on pairs that get affected by NFP. Don’t forget to share the answer if you find it helpful.

This topic was modified 6 months ago by Chinedu Chikwem Ogugua
Share: