Basic Economics for Spread Bettors: US Non-Farm Payrolls

As a spread bettor or CFD trader you will want to monitor changes in US Non-Farm Payrolls for the same reasons as you would want to monitor changes in Jobless Claims figures. The level of employment in an economy and the level of pay has a direct effect on the likely amount of consumer spending. Consumer spending is a key economic signal and plays a vital role in determining the state of the economy. 

The US Non-Farm Payrolls report indicates what the basic hourly wage is for major industries. It also shows who is unemployed, who are working, the hourly pay of the worker and how many hours a week they are working. US Non-Farm Payrolls figures keep the markets anxious and on their toes both sides of the Atlantic Ocean.

The report also is of interest to those who want to predicate or anticipate any change in interest rates. Vital if your interest lies in Forex markets. Lower levels of unemployment and increasing wages is an indicator that wage inflation is present in the economy. One of the remits of the Federal Reserve is to control inflation and signs of inflation may be responded with a rise interest rates. Conversely falling levels of employment and decreasing wages suggest the economy is struggling and the Fed may decide to lower interest rates in order to stimulate growth. Interest rates are both important to stock and currency prices, this is why the US Non-Farm Pay rolls figures are  another important indicator to monitor. As UK or European spread bettor it is important to monitor US indicators due to how interlinked economies are now due to globalization and due to the simple fact the US economy is the largest in the world. 

Part of the Beginners Guide to Strategy and Analysis for Spread Betting

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