The Forex Factory calendar shows the NFP dates for the trader in real time and also displays the forecast, previous results, and actual status. It is important to note that the NFP release time changes according to the time zone of each country. For instance, London’s NFP release time changes during winter while it is the opposite during summer. Nevertheless, traders can still adapt to the time and check the results later when markets have cooled down.
The US dollar tends to react positively to positive NFP readings. This is because the Canadian economy is very closely linked to the US economy, and more jobs in the US mean more orders for Canadian firms and higher export values. Other indicators that relate to the job market may also have an effect on the market, and the Federal Reserve closely monitors the labour market when deciding whether to change interest rates. The NFP report is an important indicator for the US economy, because it shows the strength of the labour market over a particular month. It also influences future monetary policy decisions. A better than expected NFP report could signal an overheating economy, meaning the Federal Reserve might need to tighten monetary policy, which will increase interest rates. The markets react differently to the NFP results, so it’s important to have a strategy in place. If the numbers are high, the US dollar will likely benefit, while if the numbers are low, it will be bad for the US economy. Investors will be looking at the inflation data as well, and how this might affect the US dollar.
In addition to the NFP reading, the employment-to-population ratio and the labor-force participation rate are important indicators to keep an eye on. The employment-to-population ratio reflects the number of employed people in the US. A low number means fewer people are unemployed, and more workers are available to fill those jobs. If you want to trade GBPUSD, you should be aware of the importance of nfp dates. They provide a good indication of the health of the US labor market and are a key catalyst for volatility. Positive NFP readings can boost the GBPUSD by a couple of points. Positive readings should be viewed as buying opportunities. Conversely, negative readings should be viewed as a sell signal. Although many traders believe they can profit from NFPS moves, this is a risky strategy. Since the reaction to the news is often accompanied by wide spreads and low liquidity, the spike can quickly reverse your trade. It is therefore a good idea to position trades ahead of time or shortly after the release of the news. It is important to note that the US jobs report will be released at 12:30 GMT. Economists predict a strong rise in job creation. While the headline number is expected to fall by a few thousand due to weather-related reasons, a rise of over 500 thousand is a strong indicator of the strength of the labour market.
Another factor to consider is the Unemployment Rate. While the NFP reading reflects employment, the Unemployment Rate doesn’t always reflect it. In some months, the economy may create fewer jobs than expected, but the Unemployment Rate still declines. In the first hour after the release of the NFP data, EUR/USD will move 50 pips higher and USD/JPY will move 64 pips higher. Although the NFP has the largest effect on the USD currency pair, the other major currencies will also be affected. How much the Euro moves will depend on the volatility of the US Dollar.
The non-farm payrolls report can be difficult to interpret, so it’s best to view it through a market-based lens. When analyzing the numbers, pay close attention to the expected and revised numbers. These numbers are usually revised a month or two after the original release date. Most of the time, revised numbers don’t move the markets as much as the original release. If the NFP reading beats expectations, expect the US dollar to rise. Professional traders will take advantage of this and short the greenback. The best time to trade is just before the NFP release. It’s a good idea to measure the average volatility of the pair before and after the release date, and to adjust your stop-loss accordingly.
If you’re looking for a reliable method for using the NFP report to win trades, you’ve come to the right place. This report is a key indicator of the US economy and is closely watched by investors. Surprises in this report can cause significant price moves. The NFP report is released on the first Friday of each month at 1.30 pm GMT. You can trade the NFP report based on the longer-term trend or on the near-term news. It’s best to trade using the long-term trend because it will help you recognize the major turning points in the market. Usually, an upward trend in the NFP report signals a bullish trend in the fundamental market.
