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CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

The Skilling NFP Preview - October 2023

The Skilling NFP Preview - October 2023

US NFP (nonfarm payrolls) report preview: 6 October 2023 (12:30 UTC)

The US NFP report is an important data release that is closely monitored by the Federal reserve (the US central bank).

Although this particular report is considered to be a lagging economic indicator (it reports on the job data from the previous month), it is still considered to be a key barometer of growth for the US economy.

Understanding the NFP report: What do the terms mean?

Headline NFP number:

  • Represents the monthly change in the number of paid workers entering the US labor market
  • Farm workers, the federal government, private households and those employed by non-profit organizations are excluded from the report).

Unemployment rate:

  • The percentage of the population who have been actively seeking work over the past four weeks (and who are willing and available to work).

Average hourly earnings:

  • The monthly percentage change in wages earned by workers (on an hourly basis).

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Monetary policy and NFP’s

The Federal Reserve (United States central bank) is responsible for controlling the supply of money in the economy through monetary policy (interest rates, buying/selling securities in the open market).

The objectives of the US central bank (the Fed) are:

  • Achieving price stability (an inflation target of 2%)
  • Maintaining a full level of employment (an unemployment rate below 4%)

Since inflation remains well-above the 2% target, a tight labour market could influence the Fed’s decision of whether or not interest rates should remain at current levels or if another 25 basis point rate hike may be warranted.

Not investment advice. Past performance does not guarantee or predict future performance.