Economics is the most important subject in the lives of individual, companies and countries. A ton of economic reports get released daily for the consumption of the markets. Some of these economic reports have the potential of moving the markets in a big way. For some forex, futures and options traders, trading these economic reports is a way of life. Each market has got its own favorite reports. But some reports have the potential of moving almost all the markets.
The most market moving reports are the Federal Reserve’s Beige Book, The Consumer and the Producer Price Index, The Gross Domestic Product (GDP). the monthly Employment Reports or what you call the NFP Report, the Institute for Supply Management (ISM). Now as said before if these reports have no surprise for the markets, nothing will happen. But in case if there is a surprise, markets can turn upside down in matter of minutes! Now when these economic reports are released, market compares the expected with the unexpected. The more these reports have the element of the unexpected, the more the markets become nervous. So, if you are a news trader or an economic report trader, you need to watch CNBC and Bloomberg constantly to know what the market is expecting.
Now, you can know the date of release of these economic reports by looking at the Economic Calendar. By looking at the Economic Calendar, you can know these dates as it provides the listing of dates when these reports will be released. Each month, most of these reports are released by the different agencies that includes both public as well as private at fixed dates.
Not all reports are created equal. Some economic reports have more influence on the market than others. The most important reports that tend to move the markets a lot are the employment report, the Producer Price Index (PPI), the Consumer Price Index (CPI) and the Federal Open Market Committee Meeting Minutes.
There are NFP Report Traders who easily make 150-200 pips at this time within minutes. Now, Non Farm Payroll Report or what you call the NFP Report is the most market moving report in the recent times. This report is released by the US DOL (Department of Labor) and it gives the state of employment in the economy during the last month period. It is released on the first Friday of each month exactly at 8:30 AM EST.
The release of employment figures is usually followed by frenzied trading that can last from a few minutes to the entire day depending on what the data shows and what the market was expecting.
Now, as the economy shifts gear from slow growth to high growth the state of employment figures can become highly important for the economy. This report is used by the traders, investors and Wall Street Analyst to anticipate any interest rate changes in the economy. In the end, it is the interest rates that stand at the center of the financial universe! NFP Report has become important in the last few years keeping in view the slow economic growth.
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