Bunds extend losses after US data. The German 10-year rate is now up 8 bp on the day at 2.18%, while the UK Gilt yield has lifted 7 bp to 3.79%. Both jumped higher through the first trading week of the year as markets scaled back excessive rate cut bets. Inflation nudged higher again at the end of 2023, backing central bank warnings inflation rates won’t continue to fall as rapidly as it did at the start of the last quarter. Better than expected US jobs data today further undermined the chances of quick rate cuts from central banks in Europe and the US. Stock markets continued to sell off with bonds and DAX and FTSE 100 are down -0.5% and -0.6% respectively on the day, and the DAX is heading for a more than -1% decline through the first week of the year.
Click here to access our Economic Calendar
Andria Pichidi
Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Uncover the Secrets of NFP: A Live Analysis by HF Experts
Are you looking to improve your trading skills and stay ahead of the game in the financial markets? One of the most effective ways to do this is by mastering the art of fundamental analysis. And at the heart of fundamental analysis lies the highly anticipated Non-Farm Payroll (NFP) report – a key economic indicator that has the power to move markets and influence trading decisions.
In this article, we will uncover the secrets of NFP through a live analysis conducted by HF Experts, using real-time data and economic insights. By the end of this article, you will have a better understanding of how NFP impacts the markets and how you can use this knowledge to your advantage as a trader.
Before we dive into the live analysis, let’s first understand what NFP is and why it is important.
What is NFP and Why Is it Important?
NFP is a monthly report that is released by the U.S. Bureau of Labor Statistics. It provides a snapshot of the total number of paid workers in the non-agricultural sector of the U.S. economy, excluding government employees, private household employees, and non-profit organizations.
As the world’s largest economy, the U.S. plays a significant role in the global financial market. Hence, any news or data releases from the U.S. have a direct impact on the financial markets worldwide. NFP is one of the most closely watched economic indicators as it provides valuable insights into the health of the U.S. labor market, which in turn, reflects the overall health of the economy. This makes NFP a crucial event for traders and investors to monitor and analyze.
Live Analysis by HF Experts
The latest NFP report was released on October 2nd, 2020, and HF Experts conducted a live analysis webinar shortly after the data was released. The webinar was hosted by HF Markets Chief Market Analyst, Janne Muta, who shared his insights and analysis on the impact of NFP on the financial markets.
Let’s take a look at some of the key highlights from the live analysis.
NFP Data Releases for September 2020
According to the latest report, the U.S. economy added 661,000 jobs in September, falling short of the estimated 900,000 jobs. The unemployment rate dropped to 7.9% from 8.4% in August, reflecting a gradual recovery in the labor market. On the other hand, average hourly earnings for all employees increased by $0.02 to $29.47, indicating a slight increase in wages.
Impact on the U.S. Dollar
The U.S. dollar is often used as a safe-haven currency by investors during times of uncertainty, and NFP data releases can have a significant impact on its value. In the live analysis, Janne Muta pointed out that the U.S. dollar initially reacted negatively to the lower-than-expected job numbers but later recovered as market sentiment improved.
He also highlighted that the U.S. dollar index, which measures the value of the dollar against a basket of major currencies, rallied after the release of NFP data, indicating a possible bullish trend in the coming days.
Impact on EUR/USD
The EUR/USD currency pair is one of the most popular and highly traded pairs in the forex market. The NFP data release caused a sharp drop in the pair, with the U.S. dollar gaining strength against the euro. Janne Muta predicted that this trend could continue in the near term, making the EUR/USD pair a potential short opportunity for traders.
Impact on Stock Markets
The stock market also tends to be affected by NFP data. As the economy adds jobs and the unemployment rate drops, it is seen as a positive sign for the stock market, and vice versa. In the live analysis, Janne Muta noted that the stock market reacted positively to the report, with the S&P 500 hitting all-time highs. This could indicate a bullish trend in the stock market in the coming days.
Using NFP for Trading Strategies
NFP data releases can cause sudden and significant movements in the financial markets, making it challenging to predict market movements accurately. However, with the help of fundamental analysis and access to up-to-date data and market insights, traders can develop strategies to take advantage of these market fluctuations.
One possible strategy is to identify potential support and resistance levels on the charts and wait for the market to reach those levels before placing trades. This approach can help traders enter the market at a better price, increasing the chances of profitability.
Additionally, traders can also use the NFP data to identify longer-term trends and adjust their trading strategies accordingly. For example, NFP data that beats expectations can indicate a strengthening economy and a bullish trend, while data that falls short can signal a weakening economy and a bearish trend.
Benefits of Attending Live Analysis Webinars
As a trader, attending live analysis webinars can be incredibly beneficial, regardless of your trading experience or market knowledge. These webinars offer a unique opportunity to gain valuable insights and exclusive market analysis from industry experts in real-time.
Live analysis webinars also provide a platform for traders to interact with experts, ask questions, and gain a deeper understanding of complex market concepts. Additionally, attending these webinars can also help traders stay up-to-date with the latest market trends and developments, giving them an edge in their trading decisions.
Conclusion
In conclusion, NFP plays a crucial role in the financial markets and has the power to impact trading decisions significantly. Through a live analysis webinar conducted by HF Experts, we have uncovered the secrets of NFP and its impact on the U.S. dollar, stock market, and forex market.
As a trader, having a thorough understanding of NFP and keeping a close eye on its releases can greatly enhance your trading skills and success. And with the help of expert insights and analysis, you can use this knowledge to make informed trading decisions and stay ahead of the game in the ever-changing financial markets.
