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Fundamental Analysis

Non farm payroll data impact on commodity market

Posted by NIFM

Non farm payroll data is related to people who engaged in the activity other than farming. Non farm payroll measures the change in the number of peoples employed during the previous month, excluding the farming industry. Job creation is the major indicator of consumer spending in which account for the majority of economic activity.

Therefore it is a major data for USD. If non farm payrolls data no comes higher than expected it is positive for USD, if comes lower than expected it is negative for USD.

Higher payrolls no. give positive effect on base metal and crude oil while negative impact on bullions (Gold & Silver).

Lower Payroll no. gave negative impact on base metals and crude while positive impact on bullions.

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