$BTC #NFPCryptoImpac The Non-Farm Payrolls (NFP) is a monthly indicator issued in the United States. It counts the total number of salaried workers, excluding those in the agricultural, government and NGO sectors.
The markets can react in one of three possible ways, in accordance with expectations about the NFP and the results that, once the official report on the indicator is finished, are announced to the general public:
The results are in line with expectations
In this scenario, the markets will not react in a significant way and it is expected that the direction of the trend will continue. However, if unemployment levels are high and the pace of job creation is low, a worsening of the future economic situation can be expected. On the contrary, if the unemployment level is not so high and the pace of job creation is high, the future of the economy could be somewhat more positive.
Results are below expectations
In this scenario, markets will react in such a way that the US dollar (USD) will be put under pressure. At the same time, higher unemployment levels are expected and average wages may decrease. As a result, a possible slowdown in the economy is very likely.
In 2017, the increase in the number of people with jobs was below expectations, as a result currencies such as the EUR and GBP strengthened against their US counterpart, the USD.
Results exceed expectations
In this scenario, where the results are better than expected, markets are expected to react favorably, giving indications of strong economic growth. This will also have an impact on the dollar, which will be strengthened.
Currencies such as the EUR and GBP, under these types of circumstances, weaken against the USD. In turn, unemployment reaches a new low and average wages maintain a positive projection