Today November NFP report is to be published at 13:30 GMT from the US.
What is NFP report?
- NFP or non-farm payroll report is the monthly statistics on labor condition in the US released by US department of labor statistics. The report comprises goods, construction, and manufacturing sector companies.
- This report influences the financial markets deeply across asset class.
Key highlights –
- The headline number for total hires last month was 261,000. November ADP employment number was encouraging at 190,000 after October’s highly encouraging 235,000.
- Today payrolls are expected at 195,000.
- The second most vital component is wage growth which as of now is showing healthy growth of 2.4 percent. Today expected at 2.7 percent y/y.
- The labor force participation rate is showing no signs of rebound. However, it was at 62.7 percent, in the last report.
- The unemployment rate is expected to remain same at 4.1 percent.
- The underemployment rate is expected to improve further from current 7.9 percent.
- Average weekly hours were previous 34.4; No major change is expected.
Impact –
- The immediate impact is usually very volatile and today could be more as the market is already agitated by weak economic dockets coming out of the United States.
- A strong report especially the headline number (above 225,000) and wage growth could lead to a rise in the dollar which has been struggling recently, though it is up this week.
- Dollar selloffs could accelerate on a materially weak report of headline below 150,000. The dollar index is currently trading at 94, up 0.27 percent so far today.