HOW NONFARM PAYROLLS (NFP) IMPACTS THE US DOLLAR & USD PRICE VOLATILITYThe US Dollar usually displays heightened volatility a
HOW NONFARM PAYROLLS (NFP) IMPACTS THE US DOLLAR & USD PRICE VOLATILITY
- The US Dollar usually displays heightened volatility across the month-to-month launch of nonfarm payrolls knowledge and locations USD value motion prone to experiencing outsized strikes
- Realized volatility within the US Greenback Index and its major currency pairs round NFP experiences tends to run above-average as foreign exchange merchants reassess the US financial system and jobs market
- Learn extra on Trading the NFP Report or try this perception on the Federal Reserve for particulars on how nonfarm payrolls knowledge can influence FOMC rate of interest selections
Currency volatility, which is characterised by the frequency and magnitude of modifications in a forex’s worth, tends to rise throughout instances of heightened market uncertainty. The discharge of high-impact financial knowledge – like US nonfarm payrolls (NFP) – have traditionally served as a key supply of heightened market exercise.
US DOLLAR VOLATILITY TYPICALLY ELEVATED IN RESPONSE TO THE MONTHLY NFP REPORT (CHART 1)
Referred to much less formally because the US jobs report, nonfarm payrolls knowledge is launched at 8:30 AM EST on the primary Friday of every month by the Bureau of Labor Statistics (BLS). Commonly revealed NFP figures present market individuals with an in depth abstract of the US employment state of affairs and broader labor market circumstances.
As such, merchants have a tendency…