NFP report preview

Today January NFP report is to be published at 13:30 GMT from the United States.

What is the NFP report?

• NFP or non-farm payroll report is the monthly statistics on labor condition in the US released by US department of labor statistics. The report comprises goods, construction, and manufacturing sector companies.
• This report influences the financial markets deeply across the asset class.

Key highlights –

• The headline number for total hires last month was 312,000. January ADP employment number was strong with hiring at 213,000.

• Today payrolls are expected at 165,000.
   
• The second most vital component is wage growth which as of now is showing very healthy growth of 3.2 percent. Today expected at 3.2 percent y/y.
• Labor force participation rate is very low at 63.1 percent.

• The unemployment rate is expected to remain the same at 3.9 percent.

• The underemployment rate is expected to improve further from current 7.6 percent.

• Average weekly hours were previous 34.4; a slight change to 34.5 expected today.

Impact –

• The immediate impact is usually very volatile and likely to affect the majority of the asset classes.

• A better than expected report especially the headline number (above 250,000) and wage growth might support the declining dollar.

• The dollar could suffer setback along with U.S. equities on a materially weak report of headline below 150,000. The dollar index is currently trading at 95.52, down 0.04 percent so far today.