Non-farm payrolls (2024)

FAQs

Does NFP affect US30? ›

The NFP report generally affects all major currency pairs, but one of the favorites among traders is the British pound/U.S. dollar (GBP/USD). Because the forex market is open 24 hours a day, all traders can trade on the news event.

Nonfarm payroll refers to the number of jobs in the private sector and government agencies. It excludes farm workers, private household employees, proprietors, non-profit employees, and actively serving military.

A higher-than-expected NFP figure can indicate a resilient economy and higher consumer demand.

How to Read the NFP? The NFP measures the number of jobs created or lost in the U.S. economy over the prior month. For example, -1000K means 100,000 jobs were lost in all non-agricultural businesses. To get a feel for the employment situation, it's good to review the history of previous NFP releases.

The most important advice for trading the NFP: You never trade the actual NFP numbers. You trade people's expectations and reactions to those numbers. The screenshot below shows a very common behavior and it highlights the importance of waiting out the first initial knee-jerk reaction.

A 30-pip stop is generally recommended and a maximum of two trades can be undertaken in this way. Most of the movement will occur in the four hours after the release of the NFP reports, so you'll want to exit in this timeframe or use a trailing stop.

The nonfarm payroll report is not a leading indicator for the labor market, but it is a coincident indicator for the overall economy. For example, as firms' labor costs go up, prices can go up. The total nonfarm payroll employment report also tells us how many jobs were created or lost in specific industries.

Why is NFP important? The Federal Reserve has the mandate to maintain maximum employment in the US, as well as stable prices. So, they'll pay close attention to the NFP when setting interest rate policy. If employment looks strong, the Fed may consider raising interest rates.

Step 1: 30 minutes before the NFP release, open the chart and find the highest high and the lowest low for the last four hours. Step 2: Place two pending orders on both sides: a buy pending order at least 5-10 pips above the highest high and a sell pending order 5-10 pips below the lowest low in that range.

How many pips does NFP move on gold? ›

Let's also take a look at the XAUUSD statistics. As noted earlier, following an NFP announcement gold can move as much as 25 dollars (2500 pips). This, however, isn't a norm.

A weak NFP report could lead to a major gold rally as markets anticipate more aggressive Fed rate cuts this month. A 59% chance of a 25-basis-point cut, with a 41% chance of a larger 50-basis-point reduction, drives gold higher.

The non-farm payroll report is an indicator of the health of the US job market and economy, so forex traders who trade currency pairs involving the US Dollar (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and others) should watch NFP data releases.

There are several methods of natural family planning: Standard Days: This is a calendar method which determines fertility using the probability of pregnancy relative to ovulation and that ovulation happens near mid-cycle. The method is simply to avoid unprotected intercourse during cycle days 8 to 19.

Understanding Nonfarm Payrolls and Their Significance in Forex Trading. Nonfarm payroll, or NFP, is a key economic indicator in the USA, the world's largest economy.

Economic data: Economic indicators, such as Gross Domestic Product (GDP) growth, employment figures, inflation rates, and consumer sentiment, can impact the US30 index. Positive economic data often correlates with bullish market sentiment, potentially pushing the index higher.

The US 30 price is affected by general uncertainty around major world economic influences such as energy prices, war, political unrest, and tariffs. Economic data from the US is also a major influence on the US 30.