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The monthly Non-Farm Payrolls report, released by the US Bureau of Labour Statistics, reveals the number of new jobs created during the previous month in all non-agricultural businesses. The changes in payrolls can be extremely volatile due to their high relation with economic policy decisions made by the Federal Reserve.
Non-Farm Payrolls (NFP) are a significant economic indicator in the United States, reflecting the total number of paid US workers of any business, excluding the following employees: government employees, private household employees, employees of nonprofit organizations, and farm employees.
The monthly changes in payroll data can have substantial short-term impacts on the forex markets, particularly the value of the US dollar relative to other currencies, such as the EUR/USD pair, and actual values beating the consensus tend to be bullish for USD.
If we look at the historical forecast and actual values for the Non-Farm Payrolls and compare them with the actual movement of EUR/USD in the next hour, we can see that in the vast majority of cases the currency pair behaved according to the above expectations.