NFP this Friday! Happy December!

The NFP is always a highly anticipated release. It shows the change in the number of employed people in the US from month to month, not including the farming sector. It's commonly regarded as an indicator of the health of the US economy, and that means it has an impact on the USD and wider markets.

If the NFP reading is high, stocks and the dollar often make gains. While a lower than expected reading can lead to a bearish trend.

What to expect from this month's NFP?

• This Friday's job report is expected to be weaker, which might be negative for gold and cyclical instruments but positive for the US dollar.
• However, the last two NFPs have exceeded the consensus by about 60,000 each.
• M15's ATR for gold peaked after the last release around $3.90. In the context of the Fed's signal of slower tightening, volatility might be at least slightly higher this time.
• The focus of November's release was on higher unemployment, which drove gold up $32 from the release to the peak.
• This is a particularly important job report because it directly affects what the Fed will do at its next meeting. Rising unemployment would very likely confirm a double hike on 14 December.