Through Nonfarm data, foreign exchange traders can have a clearer understanding of the expansion or contraction of the US economy. The increase in general employment means that the company is hiring and expanding, and the hired people will have money to consume to promote economic growth, and the decrease in employment is the opposite. At the same time, Nonfarm data also affects the Fed's decision on interest rates to a certain extent. The suppression of the market in the past has focused on the trend of interest rates that may appear in the future. The disappointing data indicates that the Fed may cut interest rates to boost growth. If employment growth is higher than expected, the Fed may raise interest rates to ease the situation. economic overheat. In addition, as the largest economy in the United States, its currency is the currency of the global reserve. Therefore, many economies link its currency value to the reserve currency, and many commodities are also priced in accordance with the reserve currency.

The impact of Nonfarm data, foreign exchange traders often speculate on these Nonfarm data. Like other indicators, the difference between actual Nonfarm data and expected data determines the overall impact on the foreign exchange market, and the data is often released on the same day. Will cause volatility in the foreign exchange market. The assets most affected by Nonfarm data include the U.S. dollar, the stock market and gold. Prior to the release of the data, the foreign exchange market reacted very quickly and was unstable most of the time. Short-term market trends showed that there was a strong correlation between Nonfarm employment data and the strengthening of the U.S. dollar. The foreign exchange market attaches great importance to the comparison between the number of Nonfarm employment and expectations. If the actual data is lower than the economist’s estimate, foreign exchange investors will sell the U.S. dollars on hand, and vice versa. When the data is consistent with the economist's forecast, the foreign exchange market will turn to the attempted sub-data in the report.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

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