Be Prepared! US Non-Farm Employment Change Tomorrow at 13:30 GMT

The first Friday of every month is Non-Farm Payroll (NFP) Day, an exciting trading time for those trading the news.

Here is what Forexyard has to say about it:

Be Prepared! US Non-Farm Employment Change Tomorrow at 13:30 GMT

We at ForexYard encourage our customers to get involved in the most intense market events. As such, we think you should know that U.S. Non-Farm Employment Change figures are expected on Friday, February 5th, at 13:30 GMT, and you need to be prepared. Market events like this one tend to create either big changes to current trends or push current trends even further. For more information about the U.S. Non-Farm Employment Change report, please read below.

What is Non-Farm Employment Change?

The U.S. Non-Farm Employment Change, also known as “Non-Farm Payrolls” (NFP) and the “Employment Report,” is a monthly economic indicator used to measure the change in the number of employed people in the United States, excluding the farming industry.

Each month the Current Employment Statistics Program (CESP) surveys about 150,000 businesses, representing approximately 390,000 worksites, in order to provide detailed industry data on employment, work-hours, and earnings of workers on non-farm payrolls for all 50 U.S. states. The survey is then published on the first Friday of each month.

The NFP is an important leading indicator that also affects consumer spending, which accounts for a majority of overall economic activity. Traders value the indicator with the highest importance as its early monthly release can set the tone for the rest of the month’s market movement.

How this Report Can Help the USD

Expectations for this month reveal that the Non-Farm Employment Change figures are forecasted to rise 10K from last month’s reading of -85K. Such a result, should it take place, will be the first time this figure has been positive since January 2008. The continuation of the economic recovery, which is being fought for vehemently by the U.S. government, has created some return of optimism in the market, which is driving traders to invest in the American economy once more. Considering that this survey has delivered negative figures for years now, a sudden rise could signal a reversal to any bearishness in the USD. This would mean the USD could be facing a very fortunate weekend, causing the EUR/USD cross to drop towards the 1.3650 level.

How this Report Can Hurt the USD

If the actual figure is lower than forecasted, a reading near -60K for example, traders are likely to see USD bearishness. Currently, investors are setting their positions on the USD based on the assumption that by the end of the week the USD could face a continuation to its bullish momentum. However, in case the survey delivers worse figures than expected, investors might be compelled to reevaluate their strategies and go short on the USD. In this turn of events, the USD may receive a small beating in the market, and the EUR/USD could rise back towards the 1.4000 price level.