U.S. Nonfarm Payroll & Impact on Indian Share Market
U.S. Nonfarm Payroll data indicates the number of people gets a job in comparison to the previous month excluding Farm Sector. Federal Bank of USA and trader from both Equity and commodity market closely watch the data as it is an important indicator to determine the US economy.
A higher than expected reading should be taken as positive or bullish for the USD, while a lower than expected reading should be taken as negative or bearish for the USD.
It shows a major impact on the Commodity Market but one can also see it impacts on Equity and Forex market.
Indicators That Impact India Stock Market
Impact of U.S. Nonfarm Payrolls data on Commodity Market (Gold)
Here data is better than forecast and just after the release of data Gold formed a massive red candle.
In the above chart, you can clearly see that U.S. Nonfarm Payroll data on 9th March 2018 is positive as it is better than forecast.
U.S. Nonfarm Payrolls on 9th May 2018 is 313K which was better than forecast (200K) and previously (239K). The data implied that a number of people got jobs as compared to last month and this is taken as positive or bullish for the USD.
As we know that Commodity market (Gold, Silver, etc.) react inversely to the USD. So, in the above chart, you can clearly see that just after the data release gold forms massive negative or red candle.
Note: The impact of U.S. Nonfarm Payroll data on Commodity is for a very short period of time.
Here data is lower than forecast and just after the release of data Gold formed a massive green candle.
In the above chart, you can clearly see that U.S. Nonfarm Payroll data on 6th April 2018 is negative as it is lower than forecast.
U.S. Nonfarm Payrolls on 6th April 2018 is 103K which was lower than forecast (193K) and previous (326K). The data implied that less number of people get a job as compared to last month and this is taken as negative or bearish for the USD.
As we know that Commodity market (Gold, Silver, etc) react inversely to the USD. So, in the above chart, you can clearly see that just after the data release gold formed a massive green candle
Note: The impact of U.S. Nonfarm Payrolls data on Commodity is for a very short period of time.