1 thought on “The impact of US non -agricultural data on gold prices”

  1. As we all know, the United States has a great bargaining power on the precious metal market, so non -agricultural data on the United States has an important impact on gold prices. When the data is good, it means that the US economy is getting better and is beneficial to the US dollar;
    [Extended data]
    Non -agricultural data:
    Non -agricultural data refers to the three values ​​of non -agricultural employment, employment rate and unemployment rate. Divided into previous values, expected values, and announced values. As the name suggests, it is a data indicator that reflects the employment status of the non -agricultural population in the United States.
    Min data Published on Friday (Summer Time: April-October) at 20:30 every Friday every month, (winter time: November-March) 21:30, data It comes from the Labor Statistics Bureau of the US Department of Labor. Non -agricultural data can greatly affect the US dollar value of the currency market. A vibrant employment situation report can drive interest rates, making US dollars more attractive to foreign investors. Non -agricultural data objectively reflects the rise and fall of the US economy. In the near future, the US dollar is extremely sensitive to the data, higher than expected, beneficial to the US dollar, lower than expected, and negative to the US dollar.
    The number of employment:
    non -agricultural employment, often as NFP, refers to a kind of employment data released by the United States. It can reflect the development and growth of the manufacturing industry and the service industry. The reduction of numbers represents companies to reduce production and the economy enters the depression. When the socio -economy is fast, consumption naturally increases, and the number of positions in consumer and service industries will increase. When the number of non -agricultural employment number increases significantly, it shows a healthy economic situation. Theoretically, it should be beneficial to the exchange rate and may indicate higher interest rates. The potential high interest rates prompt the foreign exchange market to promote the country’s currency appreciation more. ,vice versa. Therefore, this data is an important indicator to observe the degree of social economy and financial development. The number of non -agricultural employment is a project in the employment report. The project mainly counts the changes in jobs other than agricultural production.
    NFP is just a data related to employment and an important impact on the foreign exchange market. Employment data can reflect the economic and healthy status of a country, and employment and new employment are very critical to traders’ expectations for traders on the country’s medium and long -term economy.
    The employment is the pillar of national economic growth -the rise in unemployment rates in some countries will in turn affect the economic growth of these countries. Therefore, traders will also worry about the economic and healthy status of these countries, and then they will start selling their currencies. Therefore, the currency of the local currency will also be softened to other countries.
    Therefore, if employment data of a country fails to be at a healthy level, even other data related to economic growth will not be optimistic.
    Nfp data is so important?
    FP is the key reference data for the adjustment of the Fed’s monetary policy to the key, which will affect the strength of the US dollar, so the monthly traders will make the expected valuation on this data. In addition, the United States is the world’s largest economy, and the US dollar is a global reserve currency. Therefore, the announcement of the monthly NFP will receive the focus of the world’s investment banks, multinational corporate groups, and central banks from various countries. From this, two important aspects of the NFP data are derived:
    1. Expectation.
    2. Impact.
    Whenever the NFP data [2] is published, the adjustment of positions expected by this data may cause investment losses, and some even unexpectedly turn to individual currency pairs. For example, if the market is expected to be stronger and the US dollar is expected to be stronger than the euro, the euro/dollar will decline, and before the data is announced, traders will bid to sell the euro/USD. The transaction volume of this position is very critical. Large -scale institutional players will have a greater impact on the currency pairs than retail investors. The actual size of this position is also very important. Large -scale institutional players’ reducing holdings in their hands will increase the impact of their holdings on this currency on this currency.

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