Tomorrow at 12:30 p.m. UTC, we will know the most important results of the American labor market – the so-called NFP (nonfarm payrolls) and the employment rate. What results should we expect?
What Is a nonfarm payrolls report?
Job creation is the foremost indicator of consumer spending, accounting for most economic activity. The NFP report covers the total number of jobs added or lost in the economy, the current unemployment rate, and the average hourly wage of employees. Because all of this data might tell us about future consumer spending, the report is an excellent marker of the overall health of the US economy.
If you would like to expand your knowledge about nonfarm payrolls, please click here, where we explain the essence of these data in detail.
What to expect?
The FED’s future monetary policy may depend on the reading. A higher-than-expected reading may lead to further tightening of monetary policy. A weaker reading may mean a weakening labor market and, therefore, a chance to stop the cycle of increases. Deviations from the reading may affect the valuation of instruments such as shares, bonds, currencies, precious metals, and even cryptocurrencies. The expected reading is 163k, and the last reading was 187k vs. 170k expected.
The information provided on this website does not, and is not intended to, constitute investment advice; instead, all information, content, and materials available on this site are for general informational purposes only.
