How much does the non-agricultural data affect the foreign exchange market?

　　In the process of foreign exchange transactions,we will find that there are many factors affecting the market,among which the impact of non-agricultural data on foreign exchange is one of them.Non-agricultural data is very important in the foreign exchange investment market.It can be said that it is a key point that every investor must grasp.Paying attention to the real non-agricultural data in time can indeed bring great help to foreign exchange traders.So what are the specific aspects of the non-agricultural impact on the foreign exchange market?What is the difference between large non-agricultural and small non-agricultural?These are the issues that traders are more concerned about.Next,CM Trade will explain the impact of non-agricultural data on foreign exchange.

　　What are nonfarm payrolls?

　　The so-called non-agricultural data refers to the three values of non-agricultural employment,employment rate and unemployment rate.Usually what we call non-agricultural data is a data indicator that reflects the employment status of the non-agricultural population in the United States.

　　Non-farm payrolls are released on the first Friday of every month and are official data.These three data are released on the first Friday of each month(winter time:November-March)at 21:30 and(summer time:April-October)at 20:30.The data comes from the U.S.Department of Labor.Bureau of Statistics.

　　Non-agricultural data can objectively reflect the state of the U.S.economy,thus reflecting the direction of the U.S.dollar.It has a great impact on precious metals and non-U.S.currencies,and has an impact on the Fed’s monetary policy.Non-agricultural data often affects the nerves of investors in the foreign exchange market,and major financial institutions have also been making non-agricultural data forecasts.

　　In the face of the complicated market trends in the foreign exchange market,and in the face of all kinds of bad news and good news in the market,investors who have been confused are more willing to trade at a clear point in time.It saves more investment costs and also brings opportunities for more profits.

　　What is Small Nonfarm Data?

　　Small non-agricultural data(Nonfarm private sector employment)published by Automatic Data Processing(ADP).The employment numbers they publish are more authoritative.The ADP National Employment Report is sponsored by ADP and developed and maintained by Macroeconomic Advisers.

　　Small non-agricultural data are released monthly,usually on the first Wednesday of each month.This data is released at 21:15(winter time:November--March)and(summer time:April--October)20:15.Generally speaking,small non-agricultural data has a certain predictive effect on non-agricultural data.The difference between large non-farm payrolls and small non-farm payrolls can be said to be an expected market situation before non-farm payrolls.The US non-farm payrolls data has a great impact on foreign exchange and precious metal transactions.The main differences between them are as follows:

　　First,small non-agricultural data are mainly non-agricultural data of the private sector,and large non-agricultural data are collected by all industries in the United States.

　　Second,the small non-agricultural data are released two days before the release of the non-agricultural data,which has a predictive effect on the non-agricultural data.Under normal circumstances,the small non-agricultural data and the large non-agricultural data are not much different.Everyone predicts large non-agricultural data based on small non-agricultural data.

　　Non-agricultural data is an important reference data for monetary policy

　　On the first Friday of every month,the U.S.Department of Labor releases data reflecting the employment situation of the U.S.non-agricultural population,which is what we often call non-agricultural data.

　　1.Non-agricultural data reflect the development and growth of manufacturing and service industries

　　The decline in non-agricultural numbers means that companies are reducing production and the economy is entering a recession.When the number of non-agricultural employment increases significantly,it indicates that the employment situation is good,which can improve the consumption capacity and consumption level to a certain extent,promote the sound development of the economy as a whole,and promote the creation of new jobs due to the healthy development of the economic situation.Therefore,the positive non-farm payroll data has a boosting effect on the exchange rate,and vice versa.

　　2.Non-agricultural data is one of the reference data for the Fed to formulate monetary policy

　　The Fed has two core goals:controlling inflation and stimulating employment.Therefore,when formulating monetary policy,the non-agricultural data must be one of the key data to be considered.Generally,after the non-agricultural data is released,many Fed officials will make some speeches on this data.

　　Given the importance of the U.S.dollar in the world,each data release triggers a market shakeout.In foreign exchange analysis,the U.S.dollar and non-U.S.currencies have a negative correlation.Therefore,a positive dollar means a negative non-U.S.currency.

　　Non-agricultural data generally publishes three values:employment(net),unemployment rate,and employment rate.Among them,employment(net worth)and unemployment rate are the top priorities.

　　According to the analysis of the three data,each time when considering market changes,three items of each data should be considered together:the previous value,the expected value and the actual announced value.It is necessary to comprehensively judge the market's reflection according to the difference between the actual announced value and the previous value and the expected value,so as to further judge the trend of foreign exchange prices.

　　(1)The announced value is larger than expected and smaller than the previous value:non-US currencies first fell and then rose

　　(2)The announced value is greater than the previous value and expectations:bullish for the US dollar,bearish for non-US currencies

　　(3)The announced value is less than expected and greater than the previous value:non-US currencies rose first and then fell

　　(4)The published value is less than the previous value and expectations:bearish on the dollar,bullish on non-US currencies

　　Of course,investors need to analyze the foreign exchange market more comprehensively and comprehensively,paying special attention to the technical analysis and changes in market sentiment.

　　What impact does the non-agricultural data have on the foreign exchange market?

　　Nonfarm payrolls are considered one of the most important monthly economic data releases in financial markets.

　　The impact of non-agricultural data on foreign exchange is reflected here:

　　A buoyant employment report could drive interest rates higher,making the dollar more attractive to foreign investors.They can earn interest income by holding U.S.Treasury bonds;on the other hand,a ill employment report will weaken demand for U.S.currency,as it causes trouble for U.S.stocks and has a negative impact on interest rates.under pressure.Both would make the dollar less attractive to foreigners.

　　The impact of non-agricultural data on foreign exchange,according to the macroeconomic interpretation,if the US non-agricultural data is good,it will support the rise of the dollar,while the non-agricultural data is poor,which will make the dollar depreciate.

　　However,this situation is not absolute,and there will be unexpected situations in the foreign exchange market.The non-agricultural data is only one of the factors that affect the market trend,so traders should look at the non-agricultural data in a correct way.

　　In addition,since the non-agricultural data has attracted the attention of many traders in the market,many traders will place orders based on their predictions before the non-agricultural data is released.Therefore,the non-agricultural market has created a range of volatility in the market.

　　After the release of the non-agricultural data,a large number of traders conduct corresponding operations again,which will have a driving effect on the foreign exchange market and affect the direction of market fluctuations.