The US economic calendar is stacked with many events throughout the month but none is more anticipated that the release of Non-Farm Payroll figures. Ultimately this report can give traders insight into whether the US economy is expanding or contracting while directly influences the decisions of policy makers such as the US Federal Reserve. First, NFP looks specifically at net changes in employment as jobs are created or subtracted in an economy in any given month. The decision to not include agricultural jobs lies in these jobs being largely seasonal that could possibly produce small temporary shifts in labor reporting.
For this reason certain government employees, private household employees and nonprofit organization are also not included in the count. Below we can see a composite of past NFP events for the last 5 trading years As the image below displays, NFP figures are known to have significant swings. T raders often speculate on these changes in NFP figures , which often causes market volatility on the day of their release.
As the most comprehensive employment number released in the United States, NFP numbers have been known to produce volatility in the Forex Market. NFP was released at 8: Traditionally there are many ways of trading the news including breakouts , news fades , and trading market dips. Trading NFP can be an exciting and often profitable pursuit for traders willing to enter into a volatile market. With this in mind, traders should expect increased volatility and plan their strategy for the day accordingly.
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