The release of the Nonfarm Payrolls, expected at 2:30 p.m. today, is a key moment for financial markets. This figure measures the change in the number of employees in the previous month, excluding agricultural jobs. Why is this important? Because job creation is a key indicator of consumer spending, which accounts for much of the economic activity in the United States.
A higher than expected value could have a positive impact on the US dollar, which is considered bullish for this currency. This could indicate that the U.S. economy is stronger than expected and could encourage investors to invest in the dollar.
On the other hand, a lower than expected value could weigh on the U.S. dollar, which is seen as bearish. This could mean that the employment situation in the U.S. is weaker than expected, which could affect confidence in the economy.
Interestingly, the forecast for Nonfarm Payrolls was missed on the downside over 80% of the time in August. Today’s forecast is 170,000, down from 187,000. The previous forecast of 200,000 was thus also missed. This suggests that the accuracy of forecasts has been uncertain lately and today’s release could bring a negative surprise.
So investors and traders should pay close attention when the Nonfarm Payrolls are released today, as it could have significant implications for the U.S. dollar and the financial markets as a whole.