NFPs or Nonfarm Payrolls are a type of monthly report issued by the Bureau of Labor Statistics in the United States. Since the US economy is the most powerful economy in the world, these reports always have a huge effect on the market, so correctly interpreting the data from these documents can be of great help to traders. In the rest of this article, we will show you the basics of using these reports and what they can mean for you as a trader. Gathering as much data as possible should be your top priority before making an investment and the NFPs are among the best sources you can find. Read on!

NFPs | What do they affect?

NFPs show everything you want to know about the workforce in the US. Primarily, they show how many new jobs were created in the US during the last month, but you can extract a lot of other useful information from them, too. You can, for example, see which sectors are creating new jobs, what’s the situation with the country’s unemployment rate etc. NFPs take into account more than three quarters of workers who have a role to play in United States’ GDP, which is why they are so important when you want to make any kind of prediction. After these reports are published, you can expect, for example, that the value of the USD will change, but pretty much every industry in which this country has some influence will be affected.

NFPs | When?

NFPs are published on the first Friday of every month, so you can expect high volatility on the market when these days come. Stock markets and the price of gold are particularly affected, so you should prepare yourself to trade accordingly. A good idea is to set your expiry time at least to the end of the day, but if you’re not sure you might want to wait until Monday for the situation to settle down. Generally speaking, taking less Time in trading after a NFP gets published is not recommended because prices in these cases often move too quickly for trader to be able to make any kind of educated guess. If you’ve never done so before, we recommend you try to get your hands on one of these reports just to see how comprehensive they really are.

NFPs | Conclusion

NFPs represent a valuable source of information for every trader because they provide loads of data about the most powerful economy in the world. If you’re serious about trading, first Friday of every month should have a special place in your calendar. Examine the situation in the US economy and you will be able to make predictions with much more accuracy, no matter what your area of interest is. This is something all traders, both rookies and veterans, simply must take into consideration when making their predictions.



1. Technical Analysis Of The Financial Markets: A Comprehensive Guide To Trading Methods And Applications (J. Murphy, 1999)
2. Apparatus and process for calculating an option (Vergil L. Daughtery, III – 2006)
3. How To Make Money In Stocks (William J. O’Neil, 1995)
4. Information-Based Stock Trading, Executive Incentives, and the Principal-Agent Problem  (Qiang Kang,  Qiao Liu-2010)
5. Trade Your Way To Financial Freedom (Van K. Tharp, 1998)

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Author: Ben Prescott

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