Been trading for a few months now and keep hearing about NFP releases causing major moves.
Still not entirely clear on what it actually measures and why it shakes up EUR/USD and GBP/USD so much every first Friday.
NFP = Non Farm Payrolls. Shows how many jobs the US gained or lost that month. Drops first Friday at 8:30 AM EST.
EUR/USD and GBP/USD go crazy because traders try to predict Fed moves. Strong jobs = potential rate hikes = dollar goes up. Weak jobs = opposite.
Learned this the hard way - either close everything beforehand or use super wide stops. Price swings 100+ pips in minutes and spreads turn garbage.
What works: wait 15-20 minutes after release. Let the madness die down, then jump in once there’s a clear direction.
Volatility’s actually your friend if you know what’s coming.
I check the forecast numbers first, then set up trades around key support and resistance breaks.
When the actual number crushes expectations, USD pairs usually run hard in one direction for 30+ minutes after release.
Avoid trading on NFP day. The wild moves can disrupt your strategy and lead to unexpected losses.