Rolf Forex , How To 4 Comments 6, Views. The Nonfarm Payrolls NFP are among the biggest market movers in the Forex markets. At the first Friday of every month, the U. Bureau of Labor Statistics releases the numbers for new job creation in the US — along with other labor market data.

NFP Trading in Forex | Winners Edge Trading

The data includes all paid workers , excluding government employees, private households, non-profit organizations and the farming industry. Surprises and major changes in the released numbers can lead to significant price movements. The NFP provides information about the US labor market, how well the economy is doing and what the future holds: The hourly wages are the final piece to that puzzle because they show the purchasing power of those jobs.

Positive NFP numbers are good for the economy and, thus, investors will buy US-Dollars, anticipating a stronger economy in the future.

How To Trade NFP As A Forex Trader

A worse than expected NFP often leads to a falling US-Dollar as investors sell their US-Dollars. The NFP is a widely watched news report and you can almost always see that volatility is drying up when investors are waiting for the release.

Thus, price often just ranges sideways on the Friday before the NFP without any sense of direction. During the actual NFP release, things often get very VERY!

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There are usually two price reactions to any NFP release:. You never trade the actual NFP numbers. The NFP number is the most closely watched of the three reports at least when it comes to the initial reaction and it comes with 3 numbers: The screenshot below shows a very common behavior and it highlights the importance of waiting out the first initial knee-jerk reaction.

The NFP came in much worse than expected and this is usually the report most people pay attention to. The screenshot below shows such an example: NFP was better than expected , but worse than the month before. Here are our most important tips when it comes to trading NFP:. To every NFP report, there is usually always a first initial fake-out spike. If NFP and the other reports deviate, amateurs get trapped during the first spike.

Avoid trading during mixed NFP numbers. To watch the NFP data release, you can go to the Forexfactory news calendar and get the numbers very quickly.

The information presented on Tradeciety are for educational and entertainment purposes only. Nothing on this website serves as investment advice or recommendations. Trading is risky and you can lose more than your initial investment. Tradeciety cannot be held responsible for any decisions visitors make. Please consult a financial advisor before making any investment decisions. Thanks for very informative article. I trade NFP only IF price has established clear narrow range before numbers come out.

If 5 min candlestick closes outside of range I get first confirmation. Your email address will not be published. Trading Resources Tradeciety Academy About us Contact Webmasters. Tradeciety — Trading tips, technical analysis, free trading tools Forex Trading Blog And Trading Academy.

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Contents in this article NFP and the economy NFP data and the US-Dollar Volatility and trading before the NFP How to trade NFP and understand the jobs data When investors get confused Trading tips for NFP day. Forex Trading Academy Forex price action course Private forum Weekly setups Apply Here.

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