Did you know about the opportunities that the NFP Payroll presents when it is released? It is released Every First Friday of the Month.
Non-farm payroll, or NFP, is a key indicator of the state of the U.S. economy, as it provides information on the number of jobs in different industries. NFP releases are important for forex traders to keep an eye on, as they can lead to volatility in the foreign exchange market. Here, we break down NFP and why it matters in trading.
The United States Bureau of Labor Statistics (BLS) publishes the US Non-Farm Payrolls Reports (NFPs) on a monthly basis. This economic report is closely monitored globally as it provides a comprehensive overview of the economic health of the United States. While much attention is focused on the headline figure of the number of non-farm jobs created each month, the NFPs also provide an indication of the strength of the American consumer and other indicators that can provide insight into the current trends associated with economic growth and inflation.
The US dollar's value is heavily influenced by the interest rate difference between two countries' currencies in the foreign exchange market. The Fed's EFR is a major factor in how attractive the US dollar is to investors. If the EFR is higher than the rate of its main trading partners, it can have a big effect on the exchange rate, which could keep foreign investors investing in the US dollar.
The NFP report is a great way for forex traders to get an idea of how the US dollar is doing. It's an indicator of how strong the US job market is and how strong inflation is. If inflation is high, it means the economy is doing well and the Fed can raise interest rates. On the other hand, if inflation is low and the economy is in a recession, it could lead to the Fed cutting interest rates. So, if you're a forex trader, it's important to keep an eye on the NFP data releases.
With volatility like this, it is easy to see why traders love the release of the NFP results.
The NFP report will be released Every First Friday of the Month at 8.30am Eastern Standard Time.
NFP release is very volatile time to trade. Many Forex Traders make thousands during this time Scalping EURUSD!