Traders are constantly monitoring various economic indicators to identify trends in economic growth. Some of the most watched economic indicators include the Consumer Price Index , housing starts , gross domestic product and the employment report.
Out of these indicators, the employment report contains a variety of data and statistics regarding the employment information of the market. The employment report is released on the first Friday of every month by the Bureau of Labor Statistics , providing data covering the previous month. The report contains information on unemployment , job growth and payroll data, among other stats. Out of the payroll data that is provided, the most important statistic that is analyzed is the non-farm payroll data, which represents the total number of paid U.
This data is analyzed closely because of its importance in identifying the rate of economic growth and inflation. As with other indicators, the difference between the actual non-farm data and expected figures will determine the overall effect of the data on the market. If the non-farm payroll is expanding, this is a good indication that the economy is growing, and vice versa.
However, if increases in non-farm payroll occur at a fast rate, this may lead to an increase in inflation. In forex , the level of actual non-farm payroll compared to payroll estimates is taken very seriously.
If the actual data comes in lower than economists' estimates, forex traders will usually sell U. The opposite is true when the data is higher than economists' expectations. Dictionary Term Of The Day. Broker Reviews Find the best broker for your trading or investing needs See Reviews. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education.
A celebration of the most influential advisors and their contributions to critical conversations on finance. Become a day trader. What impact does a higher non-farm payroll have on the forex market? By Kesavan Balasubramaniam Share. Understand some of the key indicators analysts use to follow the U. Read this brief analysis of the accuracy of Bureau of Labor Statistics, including a summary of the types of reports issued Discover the key leading U.
Learn the most common technical indicators that forex traders and currency market analysts utilize to predict likely market Discover the indicators that correlate with real economic health, and learn why many traditional metrics do not function Learn what seasonally adjusted data is, how it is determined and when it should be used to evaluate the information gathered US non-farm payrolls declined 33, for September compared with expectations of a gain around 85, for the month and this was the first reported decline for over seven years.
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Here is the list to track economic indicators of France. Payroll tax is a tax that an employer withholds and pays on behalf An employer who receives an employee on loan from another business, How much a fixed asset is worth at the end of its lease, or at the end of its useful life. If you lease a car for three years, A target hash is a number that a hashed block header must be less than or equal to in order for a new block to be awarded.
Payout ratio is the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage. The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as Get Free Newsletters Newsletters.More...