Non-Farm Payrolls (NFP)
NFP is the US monthly jobs report, released on the first Friday and the single most market-moving data point for forex.
NFP is the US monthly jobs report, released on the first Friday, counting jobs added or lost outside farming. It is the most market-moving data point in forex because it shapes expectations for Federal Reserve rate policy.
Non-Farm Payrolls (NFP) is the US monthly employment report published by the Bureau of Labor Statistics, normally on the first Friday of the month. It counts the number of jobs added or lost in the US economy excluding farm workers, private household employees and a few other categories. Because it is the first hard read on the health of the world's largest economy, it routinely produces the biggest single-spike moves in USD pairs, and it sets the tone for the next month of trading.
How It Works
- Counts new jobs created in the previous month, excluding farm workers and a few small categories
- Released by the US Bureau of Labor Statistics, normally the first Friday at 8:30am ET
- Traders also watch the unemployment rate and average hourly earnings in the same release
Trading Tips
Spreads widen and slippage spikes in the minute after release - size down or wait for the dust to settle
The market trades the surprise versus the forecast, not the raw number
Revisions matter: the previous two months are usually revised in the same release
Non-Farm Payrolls (NFP) Example
Say NFP prints 300,000 new jobs against 180,000 expected. The dollar spikes within seconds: EUR/USD drops 80 pips in a minute, gold slides, and stops on both sides get swept before any trend forms.
How Traders Use Non-Farm Payrolls (NFP)
Never hold full size into the first Friday of the month unless the gamble is the plan. Either stand aside, cut size to a fraction, or wait fifteen minutes and trade the settling trend instead of the spike.
Related Terms
Sources
- US Bureau of Labor StatisticsOfficial NFP releases and revisions
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