Strengths of the Beige Book:

  • Almost all districts noted a modest improvement in labor availability amid weaker labor demand
  • Overall pricing power held steady despite some hints of slowing demand
  • Most districts continued to see wage growth
  • Housing demand has weakened significantly
  • New auto sales remained sluggish due to low inventories
  • Full report

This is an interesting change in the job market. Non-agricultural payroll

Non-agricultural payroll

The Nonfarm Payrolls (NFP) is the largest monthly economic news indicator released in the United States, usually on the first Friday of each month. Reported by the United States Bureau of Labor Statistics, the NFP measures the increase or decrease in the number of employed people over the previous month, excluding those working in agriculture and the agricultural industry. The NFP can also be called job change, and is the most anticipated monthly report. Since it is released at the beginning of every month, it usually causes huge movements in the financial markets, especially in the forex market. Traders care about NFP because job creation itself is one of the most important indicators of consumer spending, a vital barometer that underpins the nation’s economy. The NFP does not include agricultural jobs, primarily because these jobs are markedly seasonal, which can lead to inconsistent reporting. Essentially, it represents all business employees (excluding public administration employees), private household employees and employees of non-profit organisations, accounting for around 80% of workers who contribute to GDP. Before the actual figure is released, industry experts make an educated guess of what the figure will be, known as the “expected figure” or “expected figure”. So if the actual published figure is higher than expected, then there are more people employed than initially thought, which is great news for the economy. Such a result encourages traders to invest in the US dollar, which gives it strength. Likewise, if the actual figure is lower than expected, the US dollar generally weakens. However, this is by no means a hard and fast rule, as other stories are coming out at the same time, and revisions can make things extremely haphazard. Oftentimes, traders are seriously anticipating (or worried) about the release, with much less trading activity just before the release, often referred to as the calm before the storm, as a price squeeze sets in. Some traders actually trade these huge spikes (known as news traders), entering the market immediately after the number is released and just before the price moves. Depending on the magnitude of the divergence from the expected figure, retail news traders try to take advantage of the fact that there is guaranteed to be a huge move.

The Nonfarm Payrolls (NFP) is the largest monthly economic news indicator released in the United States, usually on the first Friday of every month. Reported by the United States Bureau of Labor Statistics, the NFP measures the increase or decrease in the number of employed people over the previous month, excluding those working in agriculture and the agricultural industry. The NFP can also be called job change, and is the most anticipated monthly report. Since it is released at the beginning of every month, it usually causes huge movements in the financial markets, especially in the forex market. Traders care about NFP because job creation itself is one of the most important indicators of consumer spending, a vital barometer that underpins the nation’s economy. The NFP does not include agricultural jobs, primarily because these jobs are markedly seasonal, which can lead to inconsistent reporting. Essentially, it represents all business employees (excluding public administration employees), private household employees and employees of non-profit organisations, accounting for around 80% of workers who contribute to GDP. Before the actual figure is released, industry experts make an educated guess of what the figure will be, known as the “expected figure” or “expected figure”. So if the actual published figure is higher than expected, then there are more people employed than initially thought, which is great news for the economy. Such a result encourages traders to invest in the US dollar, which gives it strength. Likewise, if the actual figure is lower than expected, the US dollar generally weakens. However, this is by no means a hard and fast rule, as other stories are coming out at the same time, and revisions can make things extremely haphazard. Oftentimes, traders are seriously anticipating (or worried) about the release, with much less trading activity just before the release, often referred to as the calm before the storm, as a price squeeze sets in. Some traders actually trade these huge spikes (known as news traders), entering the market immediately after the number is released and just before the price moves. Depending on the magnitude of the divergence from the expected figure, retail news traders try to take advantage of the fact that there is guaranteed to be a huge move.
Read this term remained solid, but there are some slight cracks, which could mean that some people have returned to the job market, or that there has been more loosening than expected. This is something the Fed wanted to see.

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