NFP (Non-Farm Payrolls)

Non-Farm Payrolls (NFP) is the US employment report released on the first Friday of every month at 8:30 AM Eastern Time. It measures the change in the number of employed people in the US, excluding farm workers, government employees, and a few other categories. It's one of the most closely watched economic indicators in the world.

NFP moves markets because employment is a key indicator of economic health, and it directly influences Federal Reserve monetary policy decisions. Strong NFP numbers (more jobs than expected) typically strengthen the USD because they suggest the economy is growing and the Fed may raise rates. Weak numbers have the opposite effect.

For forex traders, NFP releases create some of the highest volatility of the month. EUR/USD can move 50-100+ pips within minutes of the release. Many traders avoid opening new positions in the hour before NFP and wait for the initial spike to settle before acting. Others specifically trade NFP for the volatility, though this requires experience and careful risk management.