I keep seeing NFP mentioned a lot but I honestly don’t really get what it means or why everyone gets so worked up about it.
Is it just a news release that affects the markets?
Non Farm Payrolls basically tells you how many jobs the US added or lost in a month.
The reason traders get excited is because it can move USD pairs pretty hard in either direction depending on whether the numbers beat or miss expectations.
I usually avoid trading during the actual release since spreads get wider and the moves can be unpredictable.
It’s US job data released monthly. It causes big market swings when the numbers come out.
NFP stands for Non-Farm Payrolls. It is the monthly US jobs report that shows hiring outside agriculture. Traders care about it because strong numbers can boost the dollar while weak numbers can hurt it. Expect fast market moves around the release at 8:30 AM ET on the first Friday of each month. Be aware that volatility can spike by 30-50 pips shortly after the announcement. Many brokers also widen spreads during this time, which can affect your trading costs if you decide to trade the news.
It measures job growth and market health.