What does nfp mean in forex


Non-farm payrolls

What are the methods of NFP?

modern nfp methods can be categorized under two main types: 1) ovulation methods, which rely on the observation of the primary indicator of fertility, the changes in the cervical mucus that is discharged when estrogen levels rise as the woman becomes fertile and nears ovulation, and 2) sympto-thermal methods, which in addition include the …

What does NFP mean in economic world?

What is Non-Farm Payroll (NFP meaning)? NFP stands for Non-Farm Payroll, and it is one of the most anticipated indicators of economic growth in the markets. The NFP report shares the number of jobs created in the United States in the non-agricultural sector during the previous month.

How much does NFP pay?

How much does NFP in the United States pay? The average NFP salary ranges from approximately $30,984 per year for Operations Associate to $144,875 per year for Integration Manager. Average NFP hourly pay ranges from approximately $10.95 per hour for Bilingual Receptionist to $27.31 per hour for Fire Sprinkler Technician.

How to trade NFP?

Trading the Non-Farm Payroll Report

  • Analyzing the Non-Farm Report Numbers. A higher payroll figure is good for the U.S. …
  • Trading News Releases. Trading news releases can be very profitable, but it is not for the faint of the heart. …
  • The NFP Trading Strategy. …
  • The Rules. …
  • Example. …
  • Strategy Pitfalls. …
  • The Bottom Line. …

How does NFP affect forex?

When the NFP is released, forex traders begin to scan for the information that tells them which currency they should be purchasing. If the employment rate is lower than the last report and payrolls for non-farm workers increase, it is taken as indication that the dollar is going to be stronger than the euro.

How do you trade in NFP?

The Simple NFP Forex StrategyDo nothing for the first 15 minutes after the NFP announcement. … Wait for an inside candle. … The high and low of the inside candle become our trade triggers. … Place a stop loss below the most recent low if you bought, or above the most recent high if you sold. … Exit 4 hours after your entry.More items…

What is NFP week forex?

Share: Non Farm Payrolls (NFP) measures the amount of jobs gained in the U.S. during the previous month that aren’t farm related. It is typically released on the first Friday of the new month, and also includes the Unemployment Rate, Average Hourly Earnings, and the Participation Rate.

What time is NFP today?

Non-Farm Payrolls Calendar The data release is usually on the first Friday of every month at 8:30am New York time.

How does NFP affect gold?

The NFP has an impact on gold if only because of its effect on the dollar. In reality, the NFP’s economic impact goes much further. A strong NFP may, in fact, support gold prices if there is a sign of industrial and/or physical demand within the economy.

What happens at NFP?

The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It represents the number of jobs added, excluding farm employees, government employees, private household employees and employees of nonprofit organizations. NFP releases generally cause large movements in the forex market.

How does NFP affect the dollar?

If non-farm payrolls are expanding, the increase is an indication that the economy is growing. However, if increases in non-farm payroll occur at a fast rate, this may lead to an increase in inflation and that may be viewed as a negative for the economy.

Which pairs are most affected by NFP?

The currency pairs most directly affected by the NFP data releases are the major currencies traded against USD: EURUSD. GBPUSD. NZDUSD.

How does NFP affect Nasdaq?

When the NFP figures are positive or exceed the market expectations, analysts take that as an indication that the US economy is growing and, with it, the US stock market exchange. Because of this, stock traders will be more inclined to invest in stock indices based in the US like the Dow Jones, NASDAQ and S&P 500.

What time is NFP UK?

Non-farm payroll times in the UK The non-farm payrolls are usually released at 1.30pm (UK time), or 8.30am (EST) on the first Friday of every month and offer trading insights into month-on-month and year-on-year data.

What time is NFP in South Africa 2020?

It is jobs day in the U.S.—with the Non-Farm Payrolls being released at 14:30 in South Africa.

Which session overlap is most desirable for most traders?

The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities.

What is NFP for Forex?

Non-Farm Payrolls, or NFP for short, is a monthly number put out by the Bureau of Labour Statistics that measures what percentage change in employment there was since last month.

How to interpret the non-farm payroll data?

The non-farm payroll data is what traders use to determine the strength of a country’s employment situation.

What Actually Causes The NFP Move

One of the reasons why NFP data causes such a huge change in forex markets is because it’s what drives rates.

Why Beginners Are Attracted To The NFP

Like a moth to light, beginners are attracted to this data point more than anything else.

Why You Should Avoid The NFP At All Costs

It’s expensive to trade – they widen the stops to cash in on the volatility.

Best Resources For NFP Data Releases

Here are some of the best resources to capture the Non-farm payroll data in real-time:

What does NFP mean in forex?

What does NFP stand for in forex? NFP in forex stands for non-farm payrolls. From the words of Nasdaq, the release of non-farm payroll figures (NFP) is the most highly anticipated event in the entire US economic calendar. NFP is the release of changes in employment figures inside the United States of America, which obviously has an effect on …

What is NFP in forex trading?

NFP in forex trading is a very commonly used term that refers to a special period of time in the forex markets. During this time, the markets are of the most volatile as they will be all year. The markets will typically make giant moves upon the release of this data during NFP. Why does NFP matter, and what is it?

What is NFP payroll?

NFP (non-farm payrolls) is called such because it is the total number of jobs added in the US economy except government, farm, non-profit and private household employees (farm and agricultural jobs are mostly seasonal, so including these jobs could result in non-accurate labor reporting). The non-farm payrolls are a major indicator …

What is NFP data?

The NFP data is released monthly and is an accurate representation of the current economic state of the USA. Employment rates, as it relates to forex, are big indicators in the eyes of the Federal Reserve Bank. When unemployment rates are high, those in charge of policy enforce low-interest rates in order to stimulate the economy.

What is NFP in the US?

NFP is the release of changes in employment figures inside the United States of America, which obviously has an effect on the markets related to currency trading. This NFP figure, released monthly by the US Bureau of Labor Statistics, provides a glimpse of how the US economy is currently performing, which in turn has a direct influence on …

When is the NFP report released?

The NFP report is released by the Bureau on the very first Friday of each and every month, at exactly 8:30 AM EST. So, shortly before and after this data is released, you can expect the forex markets to become extremely volatile.

Which currency pairs are most affected by the NFP?

For example: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF. These are just some of the currency pairs that will be most volatile after the NDP figures are released.

How does NFP affect forex?

How does the NFP affect forex? The non-farm payroll report causes one of the consistently largest rate movements of any news announcement in the Forex market. As a result, many analysts, traders, funds, investors and speculators anticipate the NFP number and the directional movement it will cause.

What is NFP report?

The non-farm payroll (NFP) report is a key economic indicator for the United States economy. It represents the number of jobs added, excluding farm employees, government employees, private household employees and employees of nonprofit organizations. NFP releases generally cause large movements in the Forex market.

What is non-farm payroll?

Non-farm payroll is an economic report that is released once per month. It has huge importance within the forex market as it creates large volatility and price movements. In this article, you will learn how to trade this move without getting knocked out by the irrational volatility it can create.

When is NFP data released?

NFP data is released on the first Friday of every month. The NFP data release is accompanied with increased volatility and widening spreads. With this being said you must take caution when trading on NFP days. Currency pairs not related to the US Dollar could also see increased volatility and widening spreads.

Can you capitalize on the real market move after the speculators have been wiped out?

Then traders can attempt to capitalize on the real market move after the speculators have been wiped out or have taken profits or losses. The purpose of this is to attempt to capture rational movement after the announcement, instead of the irrational volatility pervading the first few minutes after an announcement.

Is it profitable to trade news releases?

Trading news releases. Trading news releases can be very profitable, but it is not for the faint of the heart. This is because speculating on the direction of a given currency pair upon the release can be very dangerous. Fortunately, it is possible to wait for the wild rate swings to subside.

Is NFP trading dangerous?

Gold, GBP, AUD and other pairs can become incredibly volatile. Trading the NFP data release can be dangerous due to the increase in volatil ity and possible widening of spreads. To combat this, and to avoid getting stopped-out, we recommend using the right leverage, or no leverage at all.

What is the NFP report?

The NFP report is a key measure of the state of the US economy. Jobs are the lifeblood of any economy and if more jobs are being created, it is a sign of a healthy and strong economy. When jobs are created, that helps put pressure on employers to raise wages which in turn, gives workers more money to spend.

Why is the NFP important?

The NFP report is arguably the most important fundamental data point for the US economy. So while interest rates changes also have a big impact on forex, it is important to note that they change as a result of the NFP report. Effectively, interest rates are lagging indicators of what is going on in the economy.

Why is the NFP report so closely watched?

As a result, the NFP report is closely watched, particularly in forex markets, as there is a direct relationship between the level of job creation and interest rates. If jobs are strong and the economy is strong, interest rates will likely be rising.

How and why does NFP data trigger forex market moves?

NFP releases have a general tendency to cause large movements in the forex market. Employment is a very important indicator for the Federal Reserve Bank. High unemployment tends to require stimulatory measures to increase economic output and increase employment.

How do FX traders take action on NFP data?

Forex traders with open positions should always be in position to react to NFP data releases. The danger in simply doing nothing about your position is that a sudden increase in volatility can lead to bigger spreads and margin calls.

Is there a reliable strategy to use when reacting to NFP data?

As with any aspect of currency trading, it is important to appreciate that no strategy is watertight when it comes to seeking trading opportunities from NFP data.

What is the best time to trade the NFP data?

The graph spikes up rapidly, way past the range of a “normal” candle but falls back equally quickly and in fact comes down to a level BELOW where it was BEFORE traders could see the data they’d been waiting for.

A warning: pullback strategies do not always work

Trading news releases can be a profitable tactic, but it comes with a warning attached. As we have outlined, trading the NFP data at the moment of release is particularly risk-adjacent which is why many traders prefer to wait for the wildest swings to subside. That’s also when there is less likelihood for gapping and slippage to occur.

Trading on news data: the broader picture

The NFP data is one of the most important regular news releases that affects trading, and seasoned traders ink those monthly dates into their diaries.


NFP data is important because it is released monthly, making it a very good indicator of the current state of the economy. The data is released by the Bureau of Labor Statistics and the next release can be found on an economic calendar.


The NFP data is an indicator of American employment, so your currency pairs that include the US Dollar ( EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and others) are most affected by the data release.


The Bureau of Labor statistics normally releases the NFP data on the first Friday of each month at 8:30 AM ET. The release dates can be found on the Bureau of Labor Statistic’s website.


Here are a few tips to remember when using NFP data releases to inform your forex trading:


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