Traders are continually looking for currency pairs that will be experiencing high volatility, in an effort to find those sought-after trading opportunities.

One of those sought-after opportunities however, is just around the corner!

This Friday, like the first Friday of every month, the Non-Farm Payrolls (NFP) data will be released by the US Bureau of Labor Statistics.

The NFP gives a timely glimpse into employment changes inside of the United States, excluding the farming sector.

What to expect?

This is one of the most anticipated financial releases.

NFP represents the change in the number of employed people during the previous month, excluding those who work in the farming industry.

In general, it is used as a gauge of economic health in the United States.

Generally, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).

A serious factor that influenced this NFP reading was the Government Shutdown


How to earn more on NFP data release

NFP is not just an indicator of the economic state of the United States – it is also a very important component of the trading process.

Generally, a higher than expected reading is seen as positive for the USD and that the currency may strengthen.

Conversely, a lower than expected reading is seen as negative and could possibly weaken the USD.

Friday’s NFP release is expected to show that the U.S. added 168K jobs in January 2019, a significant decrease from 312K jobs in December.

January’s Unemployment Rate is expected to stay stable at 3.9%, and Average Hourly Earnings (MoM) are expected to increase by 0.3%, slightly down from last month’s 0.4%.

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What to be careful during the NFP data release?

  1. A sudden spike that may appear on many currency pairs once the NFP is announced usually subsides right after and corrects itself towards the initial price.
  2. NFP volatility not only affects USD pairs but may affect commodities and even metals closely tied to the Dollar’s price.
  3. Safe havens such as Gold (XAU) may also be affected, especially in a negative scenario in which investors sell-off USD pairs and turn to safe havens to mitigate risk.
  4. Actually, when analyzing the NFP, investors also look at two other indicators, namely the Unemployment Rate and the Average Hourly Earnings. If either or both of those indicators are strong, a negative NFP might not impact the USD as significantly.

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On Friday February 1st is Non-Farm Payroll day and it could prove to be very interesting for both institutional and retail investors.

The 312,000 figure for January was a significant improvement over estimates.

The median forecast of economists polled by Reuters is for the Non-Farm Payroll to rise by 165,000. The range varies from -40,000 to +230,000. The ADP Employment data on Wednesday at 213,000 beat estimates by 33,000.

HotForex’s market experts will also keep you updated via the analysis page where they will have additional live commentary on the results, and market action and reaction.

Join today and follow the trend together!

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U.S. Non-Farm Payroll (NFP) gives a timely glimpse into employment changes inside of the United States affecting most Currency Pairs, Indices, Metals and Oils.

Greater volatility is to be expected!

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