The non-farm payroll (NFP) report is a key economic data release which comes out every first Friday of each new month by United States Bureau Labour Statistics. It is intended to represent the total number of paid workers in the U.S. minus farm employees, government employees, private household employees and employees of nonprofit organizations.
It’s very important to note that the USA is the biggest market in the world. NFP plays a vital role in measuring the inflation rate, what the next central bank policy could be, unemployment rate and economic growth.
Why do traders love NFP
Once NFP data gets released the market tends to have high volatile movement in split seconds and minutes,’’ i call it power house master candles’’ where your trading opportunities are unlimited.
It is mainly favoured by fundamental traders who often take both buy and sell orders simultaneously and hope to close higher gains on the winning trade.
What to expect on the day of NFP
The data release normally happens in the afternoon at 14:30CAT meaning morning session will be very quite with no major movements however as time moves closer to release the market will then become choppier. Traders are excited to jump in the market and normally buy the rumour and sell the news
Once news breaks we will see ‘’spikes’’ volatility moving in one direction and going in the opposite direction in split seconds, even if you are in the right direction you might be kicked out eg buy /sell order might be closed out due to the spike.
Currency Pairs traded during NFP
EURUSD; GBPUSD; AUDUSD; NZDUSD; USDCHF; USDJPY; USDCAD & USDZAR
On the day of NFP you are keen, hyper and looking forward to the event. Short positions they are the best as our aim as retail traders is to exploit opportunities we might find on the day.