In the world of forex trading, one of the important news that attracts the attention of many traders is NFP. This is one of the economic indicators in fundamental analysis which often has a direct impact on the market.
Non-farm payroll (NFP) is data on employment levels in the United States apart from the agricultural, government, household, and non-profit institutions sectors. This data shows unemployment statistics in the United States, including the general unemployment rate, long-term unemployment rate, and short-term unemployment rate. NFP data is released by the US Bureau of Labor Statistics (BLS) on the first Friday of every month.
In the context of economics and financial markets, NFP is a very significant indicator. NFP data releases generally have a high impact on the stock, bond, and forex markets. This is due to the relationship between employment and economic growth.
And how to analyze the NFP report? Referring to the FXOpen blog, there are three important points that traders must pay attention to when analyzing the NFP report, below are these points.
NFP news can have an impact on financial markets, not only affecting currencies but also the value of stocks and bonds. Actual data that is higher than the forecast is good for the currency, whereas actual data is worse than the forecast and negative for the currency.
How to trade when the NFP is released? According to the FXOpen blog some traders use OCO (One Cancels the Other) orders by placing orders above or below the current price and using stop losses at the top and bottom points, wherever the price breaks, one of the orders will be active and cancel another order.
Non-farm payroll (NFP) is data on employment levels in the United States apart from the agricultural, government, household, and non-profit institutions sectors. This data shows unemployment statistics in the United States, including the general unemployment rate, long-term unemployment rate, and short-term unemployment rate. NFP data is released by the US Bureau of Labor Statistics (BLS) on the first Friday of every month.
In the context of economics and financial markets, NFP is a very significant indicator. NFP data releases generally have a high impact on the stock, bond, and forex markets. This is due to the relationship between employment and economic growth.
And how to analyze the NFP report? Referring to the FXOpen blog, there are three important points that traders must pay attention to when analyzing the NFP report, below are these points.
- As Expected: Currency values may experience minimal immediate impact if the report aligns with analyst forecasts, as the anticipated news is already priced into the market.
- Better than Expected: A robust report can boost the US dollar, as higher employment rates suggest economic strength, potentially leading to rising interest rates.
- Worse than Expected: Conversely, weak employment figures can devalue the US dollar, reflecting economic concerns and pressuring policymakers towards accommodative measures.
NFP news can have an impact on financial markets, not only affecting currencies but also the value of stocks and bonds. Actual data that is higher than the forecast is good for the currency, whereas actual data is worse than the forecast and negative for the currency.
How to trade when the NFP is released? According to the FXOpen blog some traders use OCO (One Cancels the Other) orders by placing orders above or below the current price and using stop losses at the top and bottom points, wherever the price breaks, one of the orders will be active and cancel another order.
