Today’s NFP report stands as most vital ahead of September FOMC

Today NFP report is to be published at 12:30 GMT from 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 -

• Headline number for total hires last month was 215,000. August ADP employment number was weaker than expected but robust enough and better than prior at 190,000.
  
  
 
• Today payrolls are expected at 220,000.
  
  
• Second most vital component is wage growth, which is lagging, in spite of solid job gains for the past two years. Last report showed wage growth of 2.1%
  
  
• Labor force participation rate is showing no signs of rebound. It was at 62.6%, in last report. It has actually weakened over the past year.
  
  
• Unemployment rate is expected to remain drop to 5.2% from current 5.3%.
  
  
• Average weekly hours were previous 34.6.

Impact -

• Volatility is sure to be on the card, post release. Risk aversion might set in over stronger payroll report.
  
  
• Today's report is most crucial as better report would give rise to hike expectation from US Federal Reserve in September. US FED reserve was looking for "some further improvement" in the labor market. Any number above 200,000 would be considered as very good.
  
  
• Dollar remains buy against Euro and Pound and weaker payroll might provide better entry.
  
  
• Any number below 180,000 would be considered as bad.