Never miss a story from Walker England

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Walker England

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

The Non-Farm Payrolls is one of the most watched and highly anticipated reports on the US economic calendar. Non-Farm Payrolls will be abbreviated within as NFP and is released on a monthly basis to give a timely glimpse into employment inside of the United States. These numbers are released by the U.S Bureau of Labor Statistics to assist policy makers with decisions regarding monetary policy.

NFP looks specifically at net changes in employment as jobs are created or subtracted in an economy in any given month. The term Non-Farm is used since farm / agricultural workers are not included in the employment count. 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.

NFP The Monthly Market Mover

As the most comprehensive employment number released in the United States, the results have been known to produce volatility in the Forex Market. The next NFP announcement is set to take place this Friday March 9th at 8:30 am New York time, and it makes sense as a trader to be prepared for unexpected volatility. Below we can see a 5minute chart of the EUR/USD. This snapshot is taken after the February 3rd NFP announcement. Last month it was released that 243,000 new jobs were added to the economy which was considerably more than the 150k predicted. This caused the EUR/USD spiked 40 pips and printed a daily high at 1.3204. Less than an hour later the EUR/USD had moved 139 pips lower to 1.3065.

With expectations of 210,000 new jobs being added to the economy this report; traders need to be ready if numbers do not come out in line with expectations. 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. Regardless of the strategy taken, it is always important to keep an eye on risk / reward levels while minimizing the use of leverage in case volatility spikes against your trade.

NFP The Monthly Market Mover

Next: The Economic Calendar (23 of 63)

Previous: What is NFP?