U. S. nonfarm payrolls in focus and how it would affect the Fed policy

Nonfarm payrolls (NFP) represent the vast majority of the U.S. workforce.

Non-farm payrolls are usually released on the first Friday of every month.

NFP reports help identify trends in economic growth, inflation, and gross domestic product (GDP). All of these can affect the direction of financial markets.

Note that the ADP employment data that only tracks the level of non-farm private employment is predictive of NFP.

ADP employment data released on Wednesday showed that private payrolls increased by 145,000 in March, following a gain of 261,000 in February. The non-manufacturing purchasing managers' index released by the Institute for Supply Management (ISM) fell to 51.2 last month from 55.1 in February. A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy.

Normally, the US market wouldn't expect much volatility as the big data is released on Good Friday, but there will be a lot of talk about the Fed's future policy.

Investors and analysts tend to view an increase in nonfarm payroll jobs as a positive for the stock and bond markets. This suggests that economic growth is on track. Still, a stronger-than-expected jobs report could mean the economy is expanding rapidly, which could send financial markets lower amid concerns that the Federal Reserve may be inclined to hawkish monetary policy.

Conversely, a decline in non-farm payrolls may worry some investors that economic growth may be slowing. A run of weak data could see central bankers taking a dovish stance on interest rates.

However, in the current complex market and macro situation, it's difficult to predict the market because it's easily affected by many factors.