Today November NFP report is to be published at 13:30 GMT from the United States.
What is the 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 the asset class.
Key highlights –
- The headline number for total hires last month was 250,000. November ADP employment number has not been very encouraging at 179,000.
- Today payrolls are expected at 198,000.
- The second most vital component is wage growth which as of now is showing very healthy growth of 3.1 percent. Today expected at 3.1 percent y/y.
- Labor force participation rate rebounded last month but still low at 62.9 percent.
- The unemployment rate is expected to remain the same at 3.7 percent.
- The underemployment rate is expected to improve further from the current 7.4 percent.
- Average weekly hours were previous 34.5; no changes expected today.
- The immediate impact is usually very volatile and likely to affect the majority of the asset classes.
- A better than expected report especially the headline number (above 220,000) and wage growth could lead to further gains in the dollar which has been struggling lately.
- The dollar could suffer setback along with U.S. equities on a materially weak report of headline below 150,000. The dollar index is currently trading at 96.86, up 0.08 percent so far today.