🚨Nonfarm Payroll Employment 🚨 Tomorrow, January 6th, at 8:30AM EST, The Bureau of Labor Statistics will release US nonfarm payroll data for the month of December. This data often has a big impact on markets, but what really is Nonfarm Payrolls? Lets dive in 🧵
Nonfarm payrolls refer to the number of paid employees in the US, excluding farm workers, government employees & private household workers. It's an important economic indicator watched by investors, analysts & policymakers b/c it reflects the overall health of the labor market.
A strong labor market typically indicates a healthy economy, which can be good news for financial markets, while a weak labor market may be a sign of economic trouble and could weigh on them.
Nonfarm payrolls data is also closely monitored by the Federal Reserve to assess the current state of the economy and labor market. The Fed uses the labor market as a barometer for monetary policy. A strong labor market leaves runway for a more hawkish Fed. 💸
There has been no shortage of volatility following the last three Nonfarm Payroll data releases, with $ES_F swinging 100's of points in just a few hours. With the tight range we have been trading in, this month's move could be especially explosive! 💣 share.trendspider.com/chart/ES1_/298…